Bybit's $140M Bounty: A Race Against Time to Recover $1.4B ETH Hack

In a significant security breach, cryptocurrency exchange Bybit suffered a $1.4 billion hack involving its Ethereum cold wallet. In response, Bybit has launched a $140 million bounty program to incentivize ethical cyber and network security experts to help recover the stolen funds. This article explores the details of the hack, the bounty program, and the ongoing investigation into Safe's multisig wallet infrastructure.

Bybit's $140 million bounty program, offering 10% of recovered funds to ethical cyber and network security experts, aims to attract top talent and foster collaboration in the recovery effort. However, implementing such a program presents several challenges, including verifying the recovery of funds, managing competition among bounty hunters, and addressing potential legal issues.



Bybit's CEO, Ben Zhou, has reassured users that all other cold wallets remain secure and that withdrawals continue without disruption. The exchange has mobilized its security team and blockchain forensic experts to investigate the attack and recover the stolen funds. Zhou has also expressed gratitude for the industry's support, with major exchanges like Binance and MEXC assisting in monitoring and preventing the laundered funds from being used.

The investigation into Safe's multisig wallet infrastructure plays a crucial role in determining the cause of the $1.4 billion ETH hack. If the official Safe frontend was not compromised, it suggests that authorized Bybit users had to sign off on the mechanism to enable the hack. This implies that the attackers managed to trick Bybit authorities into signing an exploit, allowing them to rewrite the code and begin draining funds.



Bybit's decision to continue processing withdrawals and securing liquidity through a bridge loan covering 80% of the stolen Ethereum demonstrates the exchange's commitment to maintaining user confidence and ensuring long-term financial stability. This proactive approach allows Bybit to meet its obligations to users while working to recover the stolen funds or find alternative solutions to cover the loss.

In conclusion, Bybit's $140 million bounty program is a race against time to recover the $1.4 billion ETH hack. The ongoing investigation into Safe's multisig wallet infrastructure is crucial for determining the cause of the hack and strengthening the broader crypto industry's security measures. Bybit's decision to continue processing withdrawals and securing liquidity through a bridge loan is essential for maintaining user confidence and ensuring the exchange's long-term financial stability in the wake of the hack. As the investigation unfolds, the crypto community awaits further developments and potential lessons learned from this significant security breach.