Cryptocurrency exchange Bybit recently suffered a massive hack, resulting in the theft of over $1.4 billion in digital assets. In response, the company’s CEO, Ben Zhou, has declared “war” on the North Korean-linked Lazarus hacker group, launching a bounty program and vowing to track the stolen funds until the hackers are eradicated.
Bybit Hacked for $1.4 Billion, CEO Launches Bounty Initiative
On February 21, Bybit experienced a significant cyberattack, with over 1.4billionincryptocurrenciesstolen,includingassetssuchasLiquidStakedEthereum(stETH)andMantleStakedETH(mETH).Thisincidentisconsideredoneofthemostseverehacksinthehistoryofthecryptocurrencyindustry,surpassingthe1.4billionincryptocurrenciesstolen,includingassetssuchasLiquidStakedEthereum(stETH)andMantleStakedETH(mETH).Thisincidentisconsideredoneofthemostseverehacksinthehistoryofthecryptocurrencyindustry,surpassingthe600 million Ronin bridge hack in 2022.
Bybit CEO Ben Zhou took to social media platform X to call on the industry to unite against Lazarus and officially launched the “Lazarus Bounty Program” website.
The program encourages users to track and freeze illegally transferred funds in exchange for rewards. According to the rules, individuals or organizations that successfully freeze funds will receive a 5% reward, while those who intercept funds will receive a 10% reward, potentially totaling up to $140 million.
Transparent Tracking Mechanism, Linking Exchanges and On-Chain Analysis Firms
Zhou emphasized in the announcement that Version 1 of the bounty program is now live and includes the following features:
- Anyone can connect their wallet to participate in tracking fund flows. If illegal funds are successfully frozen, a 5% reward will be immediately granted.
- All exchanges and mixing protocols that assist in freezing funds will be eligible for rewards.
- A real-time “Good and Bad Actors Leaderboard” will track which institutions quickly cooperate and which assist Lazarus in money laundering, preventing institutions from being sanctioned for participating in illegal transactions.
- Real-time API wallet address updates will be provided, enabling exchanges and blockchain analysis companies (such as Chainalysis, Arkham, and Elliptic) to access the latest information.
Future Updates: Strengthening Collaboration with Governments and Law Enforcement
Bybit also announced that the program will continue to be optimized. Future Version 2 updates will include:
- Real-time updates on hacker wallet information, including balances and fund flows, allowing “bounty hunters” to choose specific wallets to track and earn rewards.
- Regulatory tools to assist governments and law enforcement in tracking and sanctioning related illegal activities.
Zhou also encouraged the community to provide feedback, emphasizing that Bybit will continue to improve the platform until the hackers are completely eradicated: “The hunting season has officially begun!”
Hacking Incidents Decline, but North Korean Hackers Remain a Major Threat
According to a January 2024 report by on-chain security firm PeckShield, hacking and fraudulent activities caused over $3 billion in losses in 2024, with phishing attacks being the most rampant and destructive. However, since 2022, the overall number of hacking incidents has shown a gradual decline.
Previous reports indicate that the North Korean hacker group Lazarus stole over $3 billion in cryptocurrencies from multiple attacks between 2017 and 2023. The Bybit hack now stands as the largest attack in the history of the cryptocurrency industry, further highlighting the threat posed by North Korean hackers to industry security.
While some companies have previously paid “ransoms” to hackers in exchange for the return of funds, Ben Zhou has chosen to actively fight back this time, refusing to pay a ransom and launching a full-scale pursuit. This move may also make Bybit a target for future attacks.
As the cryptocurrency industry continues to evolve, the security and monitoring mechanisms of exchanges will become a major focus. The Bybit hack has already had a significant impact on the industry.
