Bybit Suffers $1.5B Hack, Triggers $5.5B Exodus
Cryptocurrency exchange Bybit suffered a near $1.5 billion hack, believed to be perpetrated by North Korea's Lazarus Group, leading to over $5.5 billion in outflows. Hackers drained roughly 70% of client ether from Bybit's cold wallet. CEO Ben Zhou revealed emergency measures, including securing loans to process withdrawals and developing new software to verify signatures amidst a bank run. Although Bybit had reserves, the incident exacerbated the crisis when Safe temporarily shut down its smart wallet functionality. Bybit is cooperating with Singaporean authorities and blockchain analytics firms, and explored the possibility of an Ethereum blockchain rollback, though this requires community consensus. The exact cause of the hack remains under investigation.