Bybit Security Breach: Latest UpdatesAttribution to Lazarus Group
Crypto investigator ZachXBT has submitted "definitive proof" linking the Bybit attack to the Lazarus Group, a hacking unit believed to be affiliated with North Korea. This group has been implicated in several high-profile cryptocurrency thefts in recent years, including the $600 million Ronin Network hack in 2022.
Attack Details
The attack targeted Bybit’s ETH cold wallet. Hackers exploited a planned transfer between wallets, deceiving signers through a manipulated user interface and URL. This allowed them to alter the smart contract logic, granting control over the cold wallet and enabling the theft. The stolen funds include:
401,347 ETH (~$1.12B)
90,376 stETH (~$253.16M)
15,000 cmETH (~$44.13M)
8,000 mETH (~$23M)
Statement from Bybit CEO Ben Zhou
Bybit co-founder and CEO Ben Zhou confirmed the hack and detailed the attack mechanics. He explained that the signing message was intended to change the smart contract logic of the ETH cold wallet, allowing the attacker to withdraw funds. Zhou assured users that the exchange remains solvent and that other cold wallets are secure. Bybit is securing bridge loans from partners to cover the losses instead of immediately purchasing ETH on the open market.
Market Reaction
The hack has caused significant volatility in the crypto market. Ethereum’s price initially dropped by over 4% before partially rebounding due to speculation that Bybit might need to repurchase large amounts of ETH to compensate affected users. However, Zhou’s clarification that Bybit had secured a bridge loan led to a bearish market sentiment. Bitcoin and other major cryptocurrencies also experienced sharp declines.
Broader Implications
The timing of the hack coincides with ETHDenver, a major Ethereum ecosystem conference, dampening the event’s usual bullish impact on the market. The incident has reignited concerns about security within the digital asset space and could lead to increased regulatory scrutiny of cryptocurrency exchanges.
What’s Next?
With heightened uncertainty, traders should exercise caution, especially when using leverage. As more details about the hack emerge, significant price movements are likely in the days ahead. Bybit is working with law enforcement agencies to investigate the hack and recover the stolen funds.