In response to the recent $1.4 billion hack of cryptocurrency exchange Bybit, both mETH Protocol and Tether have taken decisive actions to freeze assets associated with the theft, aiming to prevent the perpetrators from liquidating the stolen funds.
The breach, which occurred early Friday, resulted in the loss of over 401,000 Ether (ETH) from Bybit’s cold wallet. Blockchain security analyst ZachXBT has indicated that the North Korean Lazarus Group is likely responsible for the attack, based on identifiable patterns consistent with their previous operations.
In a swift response, mETH Protocol, a decentralized platform on the Ethereum blockchain, released a post-mortem report detailing the attacker’s movements. The hacker attempted to withdraw 15,000 cmETH via mETH Protocol; however, due to the protocol’s built-in 8-hour withdrawal delay and security measures, the transaction was halted, and the assets were recovered.
Similarly, Tether’s CEO, Paolo Ardoino, announced that approximately $181,000 worth of USDT linked to the stolen funds had been frozen, preventing the hackers from accessing these assets. Ardoino credited the swift collaboration with blockchain security experts for this action.
Bybit has assured its users that, despite the breach, all client assets remain secure and fully backed. The exchange has also initiated a Recovery Bounty Program, offering up to 10% of the recovered funds—potentially $140 million—to on-chain security experts who assist in retrieving the stolen assets.
This incident underscores the importance of robust security measures and the collaborative efforts within the cryptocurrency community to combat malicious actors and protect user assets.