Bybit has reportedly begun purchasing Ethereum (ETH) as it launches a full-scale investigation into a recent large-scale security breach.
According to blockchain transaction data, an estimated Bybit address (0x2E…1b77) received 100 million USDT from 0xEC…B5E76 around 10 hours ago. Following this, 50 million USDT was transferred to Galaxy Digital and FalconX’s OTC addresses respectively seven hours ago. The exchange then purchased a total of 36,900 ETH just an hour ago.
Bybit CEO Ben Zhou said in his statement that they will not purchase ETH to replace stolen assets.
In response to the unprecedented security breach, Bybit has officially announced the launch of its “Bounty Recovery Program.” The initiative aims to collaborate with global cybersecurity and blockchain analytics experts to track down the perpetrators behind what has been dubbed the largest theft in crypto history.
As part of this program, Bybit is offering a 10% reward to participants who successfully recover stolen funds. The total reward will be calculated based on the verified recovery of stolen ETH, which was worth over $1.4 billion at the time of the incident. If all stolen assets are recovered, the total payout could reach a staggering $140 million.
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Bybit CEO Ben Zhou expressed his satisfaction with the industry’s rapid response, saying: “Within 24 hours of the incident, we received strong support from industry leaders and organizations. We hope to officially reward community members who provide us with expertise, experience, and support through the ‘Reward Recovery Program.’ We won’t stop there. Interested participants can contact the platform.”
Cobo co-founder and CEO Shenyu weighed in on the security issues uncovered by Bybit’s $1.5 billion security breach. In a post on X (formerly Twitter), he highlighted three key weaknesses in blockchain security:
- Vulnerable Front-End and Plugins: Interfaces can be easily manipulated, making it difficult for users to verify signature data.
- Multi-Sig Keyholder Issues: The lack of independence and enforced auditing mechanisms in multi-signature environments increases security risks.
- Weak Hardware Wallet Security: Many hardware wallets have poor transaction parsing capabilities, leaving them in a blind signing situation.
*This is not investment advice.
Continue Reading: Bybit Makes First Move to Replace Over Billion Dollars of Stolen Ethereum
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