Bybit CEO Ben Zhou has committed to exploring all possible options to recover the funds that were stolen in the recent hack connected to the Lazarus Group. During a discussion on Feb. 22, Zhou outlined the exchange’s plan, which includes implementing a bounty program, collaborating with law enforcement, and consulting with the Ethereum Foundation for potential solutions.
Zhou also discussed the possibility of rolling back the Ethereum blockchain to reverse the impacts of the Feb. 21 hack. He emphasized the importance of community input in making any decision about a potential rollback. In 2016, the Ethereum network faced a similar situation after the DAO hack, which resulted in a hard fork and the creation of Ethereum Classic. However, Ethereum core developer Tim Beiko has cautioned against rolling back the Ethereum network to its pre-Feb. 21 state, despite calls from the crypto community. Beiko explained that while the proposal may seem reasonable, it is technically complex and could have significant consequences.
The Bybit hack occurred when funds were transferred from the exchange’s multisig wallet to a warm wallet. The transfer appeared legitimate but contained malicious code that altered the smart contract logic to steal the funds. Beiko noted that the compromised interface made the transaction seem normal, leading some in the crypto community to advocate for a rollback to recover the stolen assets. However, Beiko stressed that this situation is different from the 2016 DAO exploit, as the transaction followed protocol rules and appeared standard, making it challenging to reverse without broader network implications.
According to blockchain analytics firm Lookonchain, the Lazarus Group, believed to be associated with North Korea, currently holds around 489,395 ETH, valued at approximately $1.3 billion, spread across 54 wallets. The group has been moving the stolen funds between wallets to obfuscate their origins and launder the assets on-chain. In response to the attack, Bybit has launched a 10% bounty program, offering up to $140 million to white-hat hackers who assist in recovering the stolen funds. Zhou expressed gratitude to industry partners for their prompt action and support following what is now considered one of the largest crypto hacks in history. Other industry players have also joined the recovery efforts, with Tether CEO Paolo Ardoino freezing 181,000 USDT associated with the hack, and Bitget CEO Gracy Chen confirming that the exchange would block transactions linked to wallets connected to the Lazarus Group.
In light of the hack, security experts and community members have shared practical advice to protect users’ assets. Vice president of blockchain at Yuga Labs, known as “Quit,” posted several security recommendations on X, encouraging users to utilize multisignature wallets, hardware wallets, and transaction simulations for enhanced safety.
