Major Cryptocurrency Firms Unite in Defense of Bybit Following Security Incident

Bybit’s recent security incident has sparked a coordinated defense response from major cryptocurrency firms, showcasing the industry’s ability to unite against common threats.

The exchange’s CEO, Ben Zhou, expressed gratitude for the swift action and support from partners, security teams, and the broader crypto community. This collective effort has helped minimize the impact of the exploit.

Industry-Wide Collaboration and Support

Key infrastructure providers, including Orbiter, deBridge, SynFutures, MYX, Thruster, and Owlto, have implemented immediate protective measures by blacklisting addresses linked to the exploit. Chainalysis has also provided crucial support by tracking and publishing the attacker’s wallet addresses.

Several blockchain security firms, such as SIS cross-chain bridge and Zero Shadows, have strengthened the defensive effort. SIS has blocked associated addresses to prevent asset laundering, while Zero Shadows has activated its round-the-clock Global Response team to assist with bad actor tracing and law enforcement communications.

Institutional Traders and Industry Players Show Support

Market stability has received crucial support from institutional traders, including TMSI, Bayside Trading, Mathrix, Wintermute, Cumberland, and GSR Markets, which have maintained their trading positions. Additional backing has come from major industry players, such as Antalpha Global, Bitget, Pionex, MEXC, Galaxy Digital, FalconX, and leading DeFi protocols Lido Finance and Solana Foundation.

“While this has been a challenging period for Bybit, our partners have demonstrated unwavering support,” Zhou stated. “Their trust and quick action speak volumes about the maturity and resilience of this industry.”

The exchange has also received support from its user base, with VIP clients and retail traders showing patience as Bybit improves its security infrastructure.

Recovery Bounty Program and Commitment to Security

Bybit has announced a major recovery bounty program, offering up to 10% of recovered funds following the cryptocurrency theft. The exchange has emphasized its commitment to strengthening security and liquidity while fostering industry-wide collaboration.

According to on-chain investigator ZachXBT, North Korea’s Lazarus Group has been identified as the mastermind behind the hack. The investigation revealed that hackers exploited Bybit’s Ethereum multisig cold wallet during a routine transfer to the exchange’s warm wallet.

Here are some key takeaways from the incident:

  • Industry collaboration is crucial in defending against common threats.
  • Major cryptocurrency firms can come together to track, contain, and minimize the impact of security incidents.
  • Blockchain security firms play a vital role in strengthening the defensive effort.
  • Institutional traders can help maintain market stability during times of uncertainty.

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