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Cryptocurrency Exchange Bybit Publishes Forensic Review on $1.5 Billion Hack
Bybit, a cryptocurrency exchange, has published a forensic review on last week’s $1.5 billion hack, revealing that its systems had not been infiltrated and that the issue seemed to have stemmed from compromised Safe wallet infrastructure.
The review concluded that “the credentials of a Safe developer were compromised,” which allowed the Lazarus hacking group to gain unauthorized access to the Safe wallet and subsequently deceive Bybit staff into signing a malicious transaction.
Blame Game Begins
However, a person familiar with the matter told CoinDesk that despite the wallet’s infrastructure being compromised by social engineering, the hack would not have been possible had Bybit not “blind signed” the transaction. The term refers to a mechanism where a smart contract transaction is approved without comprehensive knowledge of its contents.
Safe also issued a statement saying that “Safe smart contracts [were] unaffected, an attack was conducted by compromising a Safe {Wallet} developer machine which affected an account operated by Bybit.” It also pointed out that a “forensic review of external security researchers did NOT indicate any vulnerabilities in the Safe smart contracts or source code of the frontend and services.”
Similarities with WazirX and Liminal Custody Hack
The apparent back and forth between both companies mirrors that of WazirX and Liminal Custody, which blamed each other following a $230 million exploit last July.
Lazarus Group’s Activities
On-chain data analyzed by ZachXBT shows that Lazarus is attempting to launder the stolen funds, with 920 wallets currently being tainted with the ill-gotten gains. The funds, perhaps inadvertently, have been commingled with stolen funds from hacks targeting Phemex and Poloniex, linking Lazarus Group to all three.
Conclusion
In conclusion, the recent hack of Bybit highlights the importance of robust security measures in the cryptocurrency space. The blame game between Bybit and Safe underscores the need for clear communication and transparency in the event of a hack. As the industry continues to evolve, it is crucial that exchanges and wallet providers prioritize security and work together to prevent such incidents in the future.
FAQs
- What is the scope of the hack? The hack involved the theft of $1.5 billion worth of cryptocurrency.
- Who is responsible for the hack? The Lazarus hacking group is believed to be responsible for the hack.
- How did the hack occur? The hack occurred due to compromised Safe wallet infrastructure and social engineering tactics.
- What is blind signing? Blind signing refers to the process of approving a smart contract transaction without comprehensive knowledge of its contents.
- What is the current status of the stolen funds? The funds are currently being laundered and have been commingled with stolen funds from other hacks.
- What is the significance of this hack? The hack highlights the importance of robust security measures in the cryptocurrency space and the need for clear communication and transparency in the event of a hack.
