Bybit CEO assures Safety After Record-breaking Crypto Hack
Ben Zhou, CEO of Bybit, reassured users that their funds are secure following a massive hack.The incident, which occurred during a routine transfer, saw hackers steal over $1.4 billion. Zhou addressed the public in a livestream, explaining that the breach involved tricking Bybit’s signers into authorizing a malicious transaction from the platform’s Ethereum cold wallet.
Bybit uses a multi-signature structure for its ERC-20 tokens, requiring multiple team members to approve transactions. Though, hackers managed to compromise this system. Blockchain developer OxCygaar suggested that the attackers individually targeted each signer, using malware to alter the multi-sig user interface.
Despite the setback, the crypto community rallied behind Bybit. The exchange is collaborating with other major players like Binance, OKX, and KuCoin, as well as law enforcement. Zhou confirmed that a police report has been filed.
Bybit is also negotiating a bridge loan to restore Ethereum withdrawals. The platform will provide collateral, mainly in Bitcoin and stablecoins. Zhou emphasized that Bybit can cover the loss, as it manages over $20 billion in assets.
Users are advised to be patient as the platform works through the congestion. Other ERC-20 withdrawals and normal operations continue as usual. Bybit has also offered a bounty of 50K ARKM tokens for data leading to the hacker’s identification.
