Bybit, the world’s second-largest cryptocurrency change by buying and selling quantity, has revealed a complete security overhaul following its $1.4 billion hack in February.
On Feb. 21, Bybit was hacked for over $1.4 billion in liquid-staked Ether (STETH), Mantle Staked ETH (mETH) and different ERC-20 tokens, making it one of many largest security breaches in crypto historical past.
To bolster defenses, Bybit has carried out a three-pronged security improve, focusing on security audits, pockets fortifications and data security enhancements, in accordance with a June 4 announcement shared with Cointelegraph.
Inside a month of the breach, the change accomplished 9 security audits, performed each by in-house specialists and impartial exterior specialists, ensuing within the implementation of fifty new security measures, the announcement stated.
Associated: How the Bybit hack happened: a $1.4 billion crypto breach explained
Chilly pockets safety and certifications
On the {hardware} entrance, Bybit stated it has tightened chilly pockets protocols, launched a revamped operational security process that mandates full supervision by security specialists all through the pockets course of and adopted multiparty computation to additional improve pockets safety.
Moreover, {hardware} security modules have been consolidated to offer greater ranges of {hardware} security.
Bybit now holds ISO/IEC 27001 certification for info security danger administration. It stated it additionally encrypts all inside and buyer communications and knowledge storage.
Associated: Bybit exchange hacked, over $1.4 billion in ETH-related tokens drained
Liquidity restoration and Lazarus bounty program
Regardless of the assault, Bybit has practically returned to pre-hack liquidity ranges, and its LazarusBounty initiative is constant to hint the stolen funds. Thus far, over $2.3 million in bounty rewards have been distributed by way of this system.
Kaiko’s report on Bybit’s liquidity revealed that Bitcoin (BTC) market depth, inside 1% of the value, had rebounded to a day by day common of $13 million simply 30 days after the hack.
Altcoin liquidity additionally rebounded, though at a slower tempo than Bitcoin. The market depth for the highest 30 altcoins by market capitalization has regained over 80% of its pre-hack ranges.
The swift restoration is partly credited to Bybit’s Retail Value Enchancment (RPI) orders, a function designed to draw institutional liquidity. These specialised orders helped stabilize market situations when liquidity was most strained.
As non-RPI liquidity briefly diminished after the hack, RPI orders performed a vital position in stabilizing buying and selling situations and enhancing pricing effectivity.
Whereas infrastructure hardening was a spotlight, Bybit warned that hackers are more and more exploiting human errors as an alternative of protocol vulnerabilities.
There’s a rise in “extra subtle assaults,” with hackers impersonating massive manufacturers and protocols, a Bybit spokesperson informed Cointelegraph, including:
“Whereas system-level intrusions stay a priority, attackers are more and more focusing on the human ingredient because the weakest hyperlink within the security chain.”
The shifting attack vectors sign that good contracts and blockchain infrastructure are not the weakest hyperlink, as attackers more and more exploit “human behaviour reasonably than code,” Ronghui Gu, the co-founder of CertiK, informed Cointelegraph.
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Cointelegraph by Lyne Qian Bybit revamps security after $1.4 billion hack cointelegraph.com 2025-06-04 14:00:00
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