Bybit cold wallet hacked - 1.4Billion ETH moved!

[pawel7777]

OK, so Ethereum got hard-forked after $150 million DAO hack back in 2016, and now the current hack is almost ten times bigger. Do you think they should hard-fork it again to reverse the steal?
I seriously doubt they will, but I can't understand what would be ETH developers' arguments against it, if they still stand in a position that the 2016 fork was a good decision. I guess they could say that in 2016 they protected the community and individual investors and now, the only victim, at least officially is ByBit, who claim they can cover the loss from their own reserves.

Do you think Vitalik and the team should fork it again?

[Mr. Magkaisa]

$1.4B is lost and the exchange is still solvent.    they're not even planning to recover lol

if they say so. i think there is nothing else to stir after all they already said they are solvent and nothing to worry. if these exchanges are just going to share the addresses where coins are sent, i think they will find out that a lot of people care about them and may actually help give them information about the culprit.

       -       Until now, they still can't determine who the culprit is, whether it was an indiscriminate job or the Lazarus group of hackers. And they also assured that even if they determine who the hackers are or if they can't recover them, they will still shoulder the lost funds of 1.4 billion dollars.

That's still a big loss for Bybit, of course, but of course they still protect the welfare of their users so that the trust remains with them. However, it's still better for us to store our crypto assets in hardware wallets than in centralized exchanges like this.

[robelneo]

       -       Until now, they still can't determine who the culprit is, whether it was an indiscriminate job or the Lazarus group of hackers. And they also assured that even if they determine who the hackers are or if they can't recover them, they will still shoulder the lost funds of 1.4 billion dollars.

That's still a big loss for Bybit, of course, but of course they still protect the welfare of their users so that the trust remains with them. However, it's still better for us to store our crypto assets in hardware wallets than in centralized exchanges like this.

Its already concluded that the Lazarus group of North Korea is the culprit. ZachXBT has identified the Lazarus Group, and by doing so they got 50,000 ARKM from Arkham Intelligence, roughly $31k. The whole community responded by helping to track the funds. The whole community is also advising everyone to take their security to its highest level. We will know in the coming days if they track and recover part of the funds.
Its good that there is no huge impact in the market; its still doing good so far.

[TryNinja]

OK, so Ethereum got hard-forked after $150 million DAO hack back in 2016, and now the current hack is almost ten times bigger. Do you think they should hard-fork it again to reverse the steal?
I seriously doubt they will, but I can't understand what would be ETH developers' arguments against it, if they still stand in a position that the 2016 fork was a good decision. I guess they could say that in 2016 they protected the community and individual investors and now, the only victim, at least officially is ByBit, who claim they can cover the loss from their own reserves.

Do you think Vitalik and the team should fork it again?

To be fair, ETH was very young at that time and the hack would have been catastrophic. Even if a company (bybit) loses $1.5b, that won't do anything to other exchanges or projects. Back in the old days, everybody from the comunity was invested in the DAO, that would kill the ecossystem. Or maybe it could be that the guys with power to decide on stuff like forking were extremely affected.

No fork is coming, that's for sure.

Also, if Bybit is $1.5b ETH short, won't they just need to buy everything back from the market? Am I the only one seeing how bullish this could be?

[Sim_card]

$1.4B is lost and the exchange is still solvent.    they're not even planning to recover lol

Of course, they will claim that they are still solvent. Some wrong statements could cause panic and mass withdrawal from their exchange, which would certainly affect solvency and a very possible bankruptcy.

Somehow I wouldn't be surprised if it turns out to be an insider theft.

Bybit have currently stopped all withdrawal from the exchange and claim they are on maintenance. I hope this is true if not those that kept their funds in Bybit will bite their fingers for learning in a hard way. This is the reason why people shouldn't keep their funds in exchanges because they're vulnerable to hack.

[Stompix]

1.4B USD is not an amount that can take down Bybit, Bybit is big enough to handle this incident even if they have to borrow from many partners.

Would you lend money to someone who has just lost 1.4 billion in a simple attack with a staff that clearly has no issue with enforcing actual security?
Also, would you lend to a guy who is losing clients?

Bybit faced a massive bank run, receiving 350,000 withdrawal requests within 10 hours. The flood of exits outpaced the platform’s processing speed, leaving 2,100 requests stuck in the queue as Bybit’s team worked through the night.

OK, so Ethereum got hard-forked after $150 million DAO hack back in 2016, and now the current hack is almost ten times bigger. Do you think they should hard-fork it again to reverse the steal?

Right before that hack, they had about 15% of all the ETH in that thing, this right here is not even 1% of all the ETH.
There will be no hard fork not even over 10 billion.

[Cryptsafe]

$1.4B is lost and the exchange is still solvent.    they're not even planning to recover lol

Of course, they will claim that they are still solvent. Some wrong statements could cause panic and mass withdrawal from their exchange, which would certainly affect solvency and a very possible bankruptcy.

Somehow I wouldn't be surprised if it turns out to be an insider theft.

Bybit have currently stopped all withdrawal from the exchange and claim they are on maintenance. I hope this is true if not those that kept their funds in Bybit will bite their fingers for learning in a hard way. This is the reason why people shouldn't keep their funds in exchanges because they're vulnerable to hack.

If the news is to go by, then many will get stocked up because they would not be able to make a withdrawal and this should serve as a lesson to those who always keep their assets under the custody of exchange when the safety of their asset can not be guaranteed. As for the withdrawal stoppage, I have not experienced it but I was able to make use of the p2p this evening and everything scaled through successfully.

[armanda90]

During Bybit exchange have higher back up fund looks not much problem with 400k ETH stolen by hacker, usually if any exchange market got hack much fund exactly over 400k ETH will make suspended for withdrawing and get maintance awhile for trading activities.
But Bybit exchange looks difference with other exchange and not make their user got worry with how much fund stolen by hacker after the exchange market keep operating as usually. Not deposit and withdrawing close make users trade as usually and they can withdraw their fund if worry about Bybit exchange in the future.

[Stompix]

Bybit have currently stopped all withdrawal from the exchange and claim they are on maintenance. I hope this is true if not those that kept their funds in Bybit will bite their fingers for learning in a hard way. This is the reason why people shouldn't keep their funds in exchanges because they're vulnerable to hack.

They claim they have never stopped but it was because of a huge wave of withdrawals that some were delayed
https://x.com/Bybit_Official/status/1893585578706227545

Of course, claims and what's happening in reality behind the counter it's a different thing.

[Wiwo]

$1.4B is lost and the exchange is still solvent.    they're not even planning to recover lol

Of course, they will claim that they are still solvent. Some wrong statements could cause panic and mass withdrawal from their exchange, which would certainly affect solvency and a very possible bankruptcy.

Somehow I wouldn't be surprised if it turns out to be an insider theft.

The thing is that Bybit have some safu balance to keep things at normal state and they will try everything possible to present themselves as self sufficient in other not to create any form of panic within their customers, amd also for now everything seems to be very OK and normenal with the exchange and their is no other official statement that can differ the already established customers confidence in they customers.

No panic withdrawal os notice yet and I still use Bybit for my p2p trading less than 24 hour's ago and everything went fine with the transactions.

[Mr. Magkaisa]

       -       Until now, they still can't determine who the culprit is, whether it was an indiscriminate job or the Lazarus group of hackers. And they also assured that even if they determine who the hackers are or if they can't recover them, they will still shoulder the lost funds of 1.4 billion dollars.

That's still a big loss for Bybit, of course, but of course they still protect the welfare of their users so that the trust remains with them. However, it's still better for us to store our crypto assets in hardware wallets than in centralized exchanges like this.

Its already concluded that the Lazarus group of North Korea is the culprit. ZachXBT has identified the Lazarus Group, and by doing so they got 50,000 ARKM from Arkham Intelligence, roughly $31k. The whole community responded by helping to track the funds. The whole community is also advising everyone to take their security to its highest level. We will know in the coming days if they track and recover part of the funds.
Its good that there is no huge impact in the market; its still doing good so far.

        -      I hope they can at least recover the 1.4 billion dollars, though it seems impossible, but let's still keep positive. Then if so, how will they recover it? If they know who the culprit is, how will they do that? Will they talk to those in charge of the Korean government to return the funds that were taken from them?

This Lazarus group is also so strong, the courage for them to do this, isn't it possible that there are high officials of the Korean government protecting this Lazarus group that is why they are so brave?

[Freemind]

1.4B USD is not an amount that can take down Bybit, Bybit is big enough to handle this incident even if they have to borrow from many partners. I hope that they will also be able to negotiate with the hacker to get most of the money back, the hacker can receive 5-10% as a reward for finding the bug and testing

This event is causing many investors to worry but not to the point of panic like the FTX event because Bybit did not cheat users. Weak-handed investors will have more reasons to leave the market, while diamond hands will have the opportunity to buy more tokens for the uptrend!

The problem is not the $1.4 billion in ETH that has "disappeared." The problem itself lies in the credibility of an exchange with the reputation that Bybit has had for years, as well as the ability to keep exchange systems, wallets and users secure. It is true that Bybit has enough funds to offset the losses even if the hacker does not return a single ETH he stole, but I think the exchange still owes its users an explanation about the new security measures they will have to implement and how they are going to avoid problems similar to the one they are suffering now in the future.

[pawel7777]

(...) It is true that Bybit has enough funds to offset the losses even if the hacker does not return a single ETH he stole, but I think the exchange still owes its users an explanation about the new security measures they will have to implement and how they are going to avoid problems similar to the one they are suffering now in the future.

Have they actually posted any proof of reserves? It's a big claim to say they had over $1.4 billions just sitting there in their own reserves and they can cover all the losses from the hack from their own pocket.
According to CMC, their 24h volume is around $1.5 billion, calculated at 0.1% fee, the stolen amount was worth almost 3 years of their revenue.

[Freemind]

Have they actually posted any proof of reserves? It's a big claim to say they had over $1.4 billions just sitting there in their own reserves and they can cover all the losses from the hack from their own pocket.
According to CMC, their 24h volume is around $1.5 billion, calculated at 0.1% fee, the stolen amount was worth almost 3 years of their revenue.

Ben Zhou, co-founder and CEO of Bybit, said a few days ago that clients' assets were backed 1 to 1: https://x.com/benbybit/status/1892969284587966869.

There is also more information available in this article, where we can find (among other things) the following statements:

“Today’s hack was massive—a tough hit for the industry. But here’s the bottom line: Bybit’s reserves still exceed its liabilities. As their independent PoR auditor, we’ve confirmed that user funds remain fully backed.

https://cointelegraph.com/news/bybit-hack-withdrawals-5-3b-reserves-secure-hacken.

[examplens]

Some exchanges have blocked funds believed to be from the Bybit hack


https://x.com/Bybit_Official/status/1893687749229563958

hint: Bitget froze 84 USDT