Bybit Strikes Back: CEO Declares War on Lazarus After $1.4B Crypto Heist

The fallout from the largest crypto exchange hack in history continues as Bybit CEO Ben Zhou has vowed to take the fight directly to the perpetrators. The $1.4 billion attack, which was confirmed to be the work of North Korea’s Lazarus Group, has shaken the industry.

However, instead of backing down, Bybit has launched an aggressive counteroffensive, offering a $140 million bounty to track and freeze the stolen assets.

Bybit’s Response: A Bold Stand Against Lazarus

Bybit has set up a real-time tracking website, monitoring the movement of the stolen funds across multiple wallets. The bounty program promises 10% of recovered assets to those who successfully freeze stolen crypto.

So far, $42.3 million has been frozen, thanks to cooperation between Bybit, blockchain analysts, and security firms. This initiative is a significant escalation in how centralized exchanges combat cybercrime, showing a more proactive stance in reclaiming stolen assets.

While Bybit maintains that customer funds remain fully backed 1:1, the hack has fueled broader concerns about security in centralized exchanges. The attack was executed through a vulnerability in the exchange’s cold wallet transaction process, leading to the transfer of over 400,000 ETH and stETH to Lazarus-controlled wallets. Reports indicate that over $270 million of these stolen funds have already been laundered.

Market Reactions and the Crypto Community’s Support

The industry’s response has been swift. Major blockchain security firms, including Chainalysis, Elliptic, and ZachXBT, have actively participated in tracking the stolen funds. Additionally, the firm secured emergency funding, acquiring nearly 447,000 ETH through over-the-counter deals to replenish reserves. This has ensured that operations remain unaffected and withdrawals continue as normal.

The attack comes at a volatile moment for the crypto market. Bitcoin has seen significant liquidations, and Ethereum has struggled to recover after dropping over 8% following the Bybit hack. Solana has also suffered, with skepticism over meme coins and regulatory uncertainty contributing to a 12% decline in the past week.