Bybit Seeks ParaSwap Refund to Recover Stolen Crypto

Cryptocurrency exchange Bybit has requested the decentralized finance (DeFi) protocol ParaSwap to refund the transaction fees obtained by the Lazarus hacker group during their recent attack on the exchange. The proposal, posted on ParaSwap's decentralized autonomous organization (DAO) forum, seeks the return of approximately $100,000 worth of 44.67 wETH.

The proposal initially raised suspicions among DAO members, who requested verification of its origin. Bybit later confirmed that the proposal was initiated by them, stating that they aimed to recover the stolen assets and prevent the hackers from profiting from their actions. The exchange also suggested a structured refund, retaining 10% as a bounty, aligning with their existing bug bounty program.

ParaSwap DAO members had differing opinions on the refund request. Some supported a conditional refund of the fees, while others voted against it. The debate highlighted the challenges of balancing security and decentralization in the DeFi ecosystem. As the discussion continues, the outcome of the refund request remains uncertain, but it is clear that the incident has sparked a broader conversation about the role of DeFi protocols in combating illicit activities.