On February 21, Ben Zhou, CEO of Bybit, unknowingly approved a transaction that led to hackers backed by North Korea stealing $1.5 billion in cryptocurrencies from the exchange, the biggest heist in the industry. The hackers exploited a security flaw in Bybit’s free software, leading to a massive breach and causing chaos in the crypto market. The hack highlighted issues with Bybit’s safety protocols and reliance on outdated systems like Safe. Bybit was able to continue operations after the hack, but confidence in the industry was shaken.
Despite the hack, Bybit continued to process customer withdrawals and borrowed money to cover losses. The massive outflows following the breach prompted other crypto companies to offer support, reflecting a sense of solidarity in the industry. The North Korean hackers, known as the Lazarus Group, used sophisticated money-laundering tactics to hide the stolen funds.
The incident serves as a wake-up call for the crypto industry to prioritize security and adopt more advanced tools to protect against such attacks. With growing calls for stricter regulations, the hack at Bybit underscores the need for exchanges to upgrade their security measures to prevent future breaches. Bybit’s handling of the crisis, including quick response times and efforts to recover from the attack, sheds light on the challenges and vulnerabilities faced by crypto businesses in an increasingly digital world.
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