“The Exchange, Facing A Bank Run and Needing to Process Withdrawals, Worked to Secure a Loan and Developed New Software to Access Frozen Funds.”, – WRITE: www.coindesk.com
The Total Assets Tracked on Wallets Associated with the Exchange Plunged from AUND $ 16.9 Billion to $ 11.2 Billion at the Time of Writing, Accounting To Data From Defilm. The Exchange is Now Looking to Understand EXACTLY WHAT HAPPENED.
In an X Spaces SESSION, BYBIT’S CEO Ben Zhou Revealed That Shortly After The Incident, He Called for “All Hands On Deck” to serve their clients with Processing with On.
Durying the session, Zhou Revealed That Security Breach Saw The Hackers Mackers Make Off with Roughly 70% of Their Clients’ Ether, WHICH MEANT THERA Yet, Zhou Found that Ether Wasn’t the most withdrawn token, with most USers Institute Withdrawing Stablecoin from Bybit.
The exchange, Zhou Noted, Has Reserves to Cover These Withdrawals, But The Crisis DEEPENEned As, In Response to The Incident, SAFE MOVED TO TEMPORYLYTUC Confidentnce in Our Platform’s Security. ”
SAFE IS A DECENTRALIZED CUSTYDY PROTOCOL PROVIDING SMART CONTRACT WALLETS FOR Digital Asset Management. Some exchanges integrated SAFE, WHICH ALLOWS USERS TO MAINTAIN CUSTYY OF THEIR FUNS AND HAS MULTISIG FUNCTION TO ENHANCE OF THE SECURITY OF Their Cold Wallets.
Total Value on Bybit’s Wallets (Defillama)
While The Exchange Had Reserves to Back Up USers’ Withdrawals, $ 3 Billion Wavet Was in a Safe Wallet That Had Just Been Down Down as The Wallet Moved To Understand, ACCEPTION.
On Social Media, SAFE SAID THAT WHILE IT HAD “Not Found Eviddance That The Official Safe Frontend Was Compromised,” It Was Temporarily Shutting Down “Certain Functionalites” Out of Caution.
While Zhou and Bybit’s Team Were Figing Out How to Securely withdraw its $ 3 Billion, withdrawals Were Mounting. Within Two Hours of the Security Breach, The Exchange Was Facing Requests to Move Over $ 100,000 Off ITS PLATFORM, Zhou Reveed.
Responde for the Sity, Zhou Told His Security Team to Engage Safe to “Find a Better Way to Get this Money Out.” The Team Ended Up Developing New Software with Code “Based on Ether” to Verify the Signatures “On a Ver Manual Level” to MOVE The STABLECOINS BACK TO THE SURGER WALLET.
The Exchange’s Team Had to Remain Up All Night to Be Able to Fulfill Withdrawals, accounting to zhou. As the exchange managed to Move the $ 3 Billion in Stablecoin Reserves, IT Was Facing A Bank Run of “About 50%” of All The Funds Within The Exchange.
Zhou said that Since the incident, the exchange has moved a signifyment of Amount of Funds of Safe Cold Wallets and is Now Determining What System Itstem Use Tose to Replace Safe.
Pushing to “Roll Back” Ethereum Was Not Off The TableSince The Security Breach, Bybit Has Englished Authoritities. Durying the session, zhou said that Singaporean Authoritities took the Issue “Very Seriously” and that he believes it have have already been escalated with interpol.
Blockchain Analysis FIRMS, INCLUDING CHAINALYSIS, WERE Englished. Zhou Said, “As Long As Bybit Is There and Continues to Track [the stolen ether]I Hope We Can Get Tese Funds Back. ”
NotBly, He Revealed That Pushing To “Roll Back” The Ethereum Blockchain, WHICH WAS Suggested by Some Industry Players On Social Media, Including Bitmex Co-Fa-Fame. Community Agreed With It.
“I have my team talking to vitalik and the Ethereum Foundation to see if there were recommendations they have a Cann. I do realy thank all these guys on Twitter asking if there is a possibility to roll back the chain. I’m not sue what was the response on their side, but anything that would help we would try, ”zhou said.
WHEN Asked if “Rolling Back” The Chain is Even Possible, Zhou Responed He Dosn’T KNOW. “I’m not Sure’s A One-Man Decision Based on the Spirit of Blockchain. It Should Be A Work in Process To See What The Community Wants, ”HE SAID.
It’s Worth Noting That A Blockchain “Refers to A State Change That Wound Alev for The Funds to Be Recovered. While Rolling Back The Bitcoin Bitcoin Bitcoin Is Technical Posible, Such A State Change on Ethereum Wound Be More Complex, Given It Smart Contract Interations and State-Based Arschite.
Neverthaless, Any State Change Wuld Require Consensus and Likely Lead to A Contentious Hard Fork, Drawing Criticism from The Community. This would Likely Split the Ethereum Blockchain Into Two Networks, Each with Its Own Supporters.
As for what exactly caused the hack to Occur, is Still Unclear. Per zhou, bybit’s laptops have not be compromised. He Said the Movements of the Transaction’s Signers have been scrutinized But appetar to have been Routine.
“We Know The Cause is Definitely Armond the Safe Cold Wallet. WHETHER IS A PROBLEM WITH OUR LAPTOPS OR ON SAFE’S SIDE, WE DON’T KNOW., “Zhou Added.
