Bybit, a prominent cryptocurrency exchange, recently faced a major security breach where hackers managed to steal nearly $1.5 billion worth of ETH and Lido Staked Ether (stETH). The CEO of Bybit, Ben Zhou, has assured users that the exchange has successfully closed the Ethereum gap and restored a 1:1 backing on all client assets following the hack.
To reinforce the CEO’s claims, a proof-of-reserves audit report was conducted by the blockchain security auditor Hacken and published on Sunday. The audit report confirmed that Bybit maintains an in-scope reserve ratio of over 100%, indicating that the exchange has ample reserves to cover its liabilities and instill trust among its users and stakeholders.
According to Zhou, the hackers exploited an ETH transfer between one of Bybit’s cold wallets and warm wallets. The exploit was linked to the Lazarus Group, a notorious North Korean cybercriminal organization, by on-chain investigator ZachXBT.
Despite the significant level of withdrawal requests received after the hack, Bybit announced a full restoration of services on Sunday. The exchange processed a record number of withdrawal requests, completing over 99.9% of them within the first 10 hours of the incident. As of now, all withdrawals across all tokens are fully operational, with systems running smoothly and processing without delays.
In an effort to recover the stolen funds, Bybit has launched a recovery bounty program offering a reward of 10% of the retrieved amount. This initiative aims to incentivize individuals to assist in recovering the stolen assets and mitigate the impact of the security breach.
For the latest updates and alerts on cryptocurrency news, users can subscribe to receive email notifications directly to their inbox. By staying informed about price action and following The Daily Hodl on social media platforms like Twitter, Facebook, and Telegram, users can stay connected and informed about the latest developments in the cryptocurrency space.
As Bybit continues to recover from the security breach and enhance its security measures, users can rest assured that the exchange is committed to safeguarding their assets and maintaining a secure trading environment.
Generated Image: Midjourney