Bybit Unveils Blacklist API to Combat $1.4B Crypto Hack

Bybit, a leading cryptocurrency exchange, has taken a significant step in its ongoing efforts to recover funds lost in a recent hack by releasing a blacklisted wallet application programming interface (API). The move, announced on February 23, comes in the wake of a major security breach that saw over $1.4 billion in crypto assets drained from the platform.

The blacklist API is designed to assist white hat hackers in their attempts to recover the stolen funds as part of Bybit's bounty program. The exchange has stated that the blacklist will be updated periodically to help combat emerging threats and protect users' assets. Bybit CEO Ben Zhou expressed his enthusiasm for the collaborative effort, stating:

"I am energized by the incredible camaraderie onchain and in real life. This can be a transformative moment for our industry if we get it right. Together, we can build a stronger defense system against cyber threats."

The announcement of the bounty program is part of a broader effort by Bybit to recover the stolen funds. Zhou revealed that the exchange is working with law enforcement officials in Singapore and discussing potential solutions with the Ethereum Foundation to address the security breach.

Following the hack, calls to roll back the Ethereum blockchain network to an earlier state before the February 21 cybersecurity breach gained traction on social media. During a February 22 X Spaces event, Bybit CEO Ben Zhou was asked about the potential for a chain rollback to invalidate the stolen funds. Zhou expressed uncertainty about the feasibility of a chain rollback but suggested that any potential rollback should be decided by a community vote rather than a single individual.

However, Ethereum core developer Tim Beiko pushed back against the idea, arguing that a chain rollback in this particular case would be technically infeasible. Beiko explained that the transaction in question did not explicitly break any protocol rules, and any rollback would have broader implications for the ecosystem that would be disruptive. Beiko concluded that there was no clean way to recover the funds through rolling back the blockchain to a previous state and noted that the 2016 DAO hack, which set a precedent for chain rollbacks on Ethereum, was a completely different situation.