Bitcoin Ripple Solana Tether “Bank Run” Cryptocurrency Exchange Bybit Hacking Followed by Chain Theft Incidents
There are reports that Ethereum, the leader in altcoins, may have been hacked again.
According to the New York Stock Exchange and the cryptocurrency industry on the 25th, blockchain security firm CertiK warned that a large-scale transfer occurred in an unidentified Ethereum smart contract, and that the funds were being converted into the DAI stablecoin. Suspicious fund movements worth $49.5 million were detected on the Ethereum network. UToday reported that a specific account was hacked and granted special permissions called ‘0x8e9b’, which allowed the withdrawal of all funds in the ‘0x9a79’ address. It has been confirmed that the ‘0x3ac9’ address, which is currently believed to be the attacker, converted the funds into 17,696 ETH (approximately $49 million).
As cryptocurrencies are falling due to the Bybit hack, there are indications that Ethereum, which was breached in this hack, will eventually be delisted and scrapped. Charles Hoskinson, the founder of Cardano (ADA), strongly criticized Ethereum (ETH) by calling it “Ethereum Classic” regarding the Bybit hack that cost 1.4 billion dollars. Hoskinson pointed out that this hack has once again revealed Ethereum’s structural problems and warned that Ethereum will eventually go down the path of an “abandoned internet platform.” The “delisting” and even scrapping of the cryptocurrency Ethereum are being discussed. In particular, Hoskinson’s point that “the Bybit hack is a structural security problem in Ethereum” is drawing attention. Following the Bybit hack,
there are signs of a “bank run” not only in Ethereum but also in Bitcoin, Ripple, and Solana, following the news that another security hole has been discovered. A suspicious fund movement worth $49.5 million has been detected on the Ethereum network. YouToday reported that a specific account was hacked and granted special authority called ‘0x8e9b’, which allowed it to withdraw all funds from the ‘0x9a79’ address. It has been confirmed that the ‘0x3ac9’ address, which is currently believed to be the attacker, converted the funds into 17,696 ETH (approximately $49 million). As cryptocurrencies are falling due to the Bybit hack, there are indications that the Ethereum that was hacked in this hack will eventually be delisted and scrapped.
Cryptocurrencies such as Bitcoin, Ethereum, Ripple, Cardano, and Solana have been adjusted since the Bybit hack. Bybit lost 401,347 Ethereum, a total of over $1.4 billion in assets due to the Bybit hack. When BitMEX founder Arthur Hayes suggested a “rollback of Ethereum’s blockchain,” Hoskinson sarcastically replied with “Ethereum Classic.” This was a reference to Ethereum Classic (ETC), which was forked from Ethereum through a rollback during the DAO hack in 2016, effectively dismissing Ethereum as outdated.
Hoskinson has previously maintained a critical stance toward Ethereum, calling it a “dumpster fire.” He predicted that “Ethereum’s current direction will eventually lead to its downfall like MySpace or Netscape,” and emphasized that “Ethereum projects will likely eventually migrate to the more efficient and scalable Cardano.” It is expected that key figures such as Hoskinson will further raise their voices in criticism of Ethereum as a result of this incident. UToday predicted that competing platforms including Cardano will actively utilize this opportunity.
Bybit suffered the largest hacking incident in history worth $1.4 billion (about 400,000 ETH). In response, Bybit announced a bounty program worth up to $14 million. It is known that the North Korean hacker group ‘Lazarus Group’ was involved in this hack. Bybit’s total assets have decreased by more than $5.3 billion since the incident. Cointelegraph emphasized that Bybit’s assets still exceed liabilities despite this hack, so user funds are safe. Hacken, which conducted an independent audit, said, “Bybit’s reserves exceed liabilities, and user funds are 100% secured.” However, this incident is having a negative impact on investment sentiment not only for Bybit but also for the entire cryptocurrency market.
Bybit is exploring various measures to recover funds. It was also reported that discussions are in progress with Vitalik Buterin, co-founder of the Ethereum Foundation. Also, Tether CEO Paolo Ardoino immediately froze the hacked 181,000 USDT. It was reported that the Lazarus Group is attempting to launder the stolen funds by distributing them to multiple wallets. It analyzed that
after this incident, exchange security will be strengthened and the use of decentralized exchanges (DEX) will increase. It predicted that interest in the DEX market may surge in the future, saying, “This hack is likely to have a negative impact on the security reliability of not only Bybit but also centralized exchanges (CEX).
One of the world’s largest cryptocurrency exchanges has been hacked for 2 trillion won. This incident, which is considered the worst hack in the history of cryptocurrency, is likely to have been the work of a North Korean hacking group. Cryptocurrency exchange Bybit was hacked, and $1.46 billion (approximately 2.1 trillion won) worth of coins were stolen. Bybit CEO Ben Zhou announced on X (formerly Twitter) that day, “The hacker stole one of Bybit’s offline Ethereum wallets.”
This incident occurred after a recent large-scale hacking incident in which $1.46 billion worth of Ethereum was stolen from Bybit. Concerns about security issues are growing. Experts are paying attention to the continued series of hacking attacks and are warning of the possibility of additional damage. Cryptocurrency experts believe that this incident will have a significant impact on the security policy of the Ethereum network in the future. In particular, it is being pointed out that strengthening smart contract security and supplementing vulnerabilities in decentralized finance (DeFi) protocols are essential. Security firms are tracking the movement of hacked funds, and exchanges are considering blocking the relevant wallets. The long-term impact of this incident on the Ethereum market will depend on whether additional funds are recovered and the response measures taken.
Bybit suffered the largest hack in history worth $1.4 billion (about 400,000 ETH), and announced a bounty program worth up to $14 million in response. The hack was reportedly carried out by the North Korean hacker group Lazarus Group, and Bybit’s total assets have decreased by more than $5.3 billion since the incident. Cointelegraph emphasized that Bybit’s assets still exceed liabilities despite this hack, so user funds are safe. Hacken, which conducted the independent audit, stated that “Bybit’s reserves exceed liabilities, and user funds are 100% secured.” However, this incident is having a negative impact on investment sentiment not only for Bybit, but also for the entire cryptocurrency market.
Bybit is exploring various measures to recover funds. It is also said that discussions are underway with Vitalik Buterin, co-founder of the Ethereum Foundation. In addition, Tether CEO Paolo Ardoino immediately froze the hacked 181,000 USDT and reported that the Lazarus Group is attempting to launder the stolen funds by distributing them to multiple wallets. Bybit said that it is strengthening network censorship while operating the withdrawal system normally to strengthen security. Bybit CEO Ben Zhou said in a live broadcast that he is not considering suspending withdrawals, and that there are currently over 4,000 withdrawal requests pending, but 70% have already been approved and processed, asking for patience from customers. The exchange also said that it plans to secure a bridge loan to continue operations.
After this incident, experts analyzed that exchange security will be strengthened and the use of decentralized exchanges (DEX) will increase. Cointelegraph predicted that “this hack will likely have a negative impact not only on Bybit but also on the security reliability of centralized exchanges (CEX),” and that interest in the DEX market could surge in the future. Cointelegraph warned that attention should be paid to the impact of this hack on the price volatility of Bitcoin (BTC) and Ethereum (ETH). It analyzed that Bybit is likely to repurchase ETH from the market to compensate customers, which could have a positive effect on the price of Ethereum, but market instability could increase as the security risks of centralized exchanges are highlighted again.
Bybit suffered the largest hack in history worth $1.4 billion (about 400,000 ETH), and in response announced a bounty program worth up to $14 million. The hack was reportedly carried out by the North Korean hacker group Lazarus Group, and Bybit’s total assets have decreased by more than $5.3 billion since the incident. Hacken, which conducted the audit, stated that “Bybit’s reserves exceed liabilities, and user funds are 100% insured.” However, this incident is having a negative impact on investment sentiment not only for Bybit, but also for the entire cryptocurrency market.
Bybit is exploring various measures to recover funds. It is also in discussions with Vitalik Buterin, co-founder of the Ethereum Foundation. Tether CEO Paolo Ardoino immediately froze the hacked 181,000 USDT and reported that the Lazarus Group is attempting to launder the stolen funds by transferring them to multiple wallets. Bybit CEO Ben Zhou asked for patience during a live broadcast, saying, “We are not considering suspending withdrawals. There are currently over 4,000 withdrawal requests pending, but 70% have already been approved and processed.” The exchange also said that it plans to secure a bridge loan to continue operations. Bybit,
the world’s second-largest virtual asset (cryptocurrency) exchange, has suffered the largest hacking loss ever, amounting to $1.46 billion (about 1.1 trillion won). This amount far exceeds the Mt. Gox incident in 2014 (470 million dollars) and the Poly Network incident in 2021 (611 million dollars). Ben Zhou, CEO of Bybit, announced on the 21st (local time), “Hackers attacked one of Bybit’s wallets,” and “Ethereum (ETH) and other ERC-20 (Ethereum token issuance standard) cryptocurrencies were stolen.” Cryptocurrency wallets
use encrypted private keys to increase security. Depending on the key storage method, they are divided into offline “cold wallets” and online “hot wallets.” Typically, exchanges store 70-80% of users’ entrusted assets in relatively secure cold wallets and the rest in hot wallets with fast deposits and withdrawals. Upbit, the largest exchange in Korea, was hacked in 2019 by the North Korean hacking group Lazarus, and the damage occurred when 342,000 Ethereum (currently worth about 1.47 trillion won) was being transferred from a hot wallet to another hot wallet. Since any type of wallet requires at least one Internet connection to deposit or withdraw assets, cold wallets are also not free from hacking damage. Bybit was also attacked by hackers while transferring Ethereum, equivalent to about 9% of total assets, from a cold wallet to a warm wallet (a wallet that combines the security of a cold wallet with the fast transaction speed of a hot wallet).
The main culprit of this incident, just like the Upbit incident, is believed to be the North Korean hacking group Lazarus. Arkham Intelligence, a blockchain data tracking platform assisting the Bybit investigation, stated that “analyst JackxBT has submitted relevant evidence (that Lazarus is the culprit).” According to blockchain analysis company Chainalysis, the amount of damage from North Korean hacking of cryptocurrency exchanges has increased from $2 million (1 site) in 2016 to $1 billion (20 sites) in 2023.
86% of investors in LIBRA, the meme coin promoted by Argentine President Javier Milei, have lost more than $1,000. According to blockchain analytics firm Nansen, more than 13,000 investors have lost a combined $251 million. More than 2,800 wallets have lost between $10,100,000 and 392 wallets have lost $101,000. Of these, 23 wallets have lost more than $1 million, for a total loss of $40.9 million. Nansen reported that the 15 addresses with the largest losses have lost a total of $33.7 million.
Dave Portnoy, a prominent American investor, has also emerged as a major victim of the LIBRA incident. According to Nansen, Portnoy’s wallet lost $6.3 million. He participated as an insider in the project, but it was later confirmed that he returned the 6 million LIBRA tokens he received to the project. The ripple effect is also growing in Argentina’s political circles. Local media outlet La Nacion raised suspicions that the president’s sister and chief of staff, Karina Milei, was involved in the project. In response, Hayden Davis, CEO of Kelsier Ventures, denied sending any related messages. Meanwhile, President Milei explained that it was “not publicity, but simply information sharing,” but the Argentine opposition party is officially demanding his impeachment, and the situation is spreading.
CoinDesk, a cryptocurrency media outlet, reported on the 19th (local time) that Hayden Davis, the co-founder of the famous coin Libra, revealed that he gave Libra coins to Karina Milei, the younger sister of Argentine President Javier Milei, who has strong influence over him. He said that he can control President Milei because he gave a lot of Libra coins to Karina. President Milley recommended Libra-related meme coins (epidemic coins) on the 14th, saying they are good for small and medium-sized businesses. When he recommended this coin, investors rushed in and the price soared to $5 at one point, but it plummeted to $0.19 in just a few hours. It plummeted 94% from its highest price.