Bybit CEO Commits to Recovering Misappropriated Funds, Addresses Risks Associated with Ethereum Blockchain Implementation

Bybit’s CEO Ben Zhou has committed to exploring all possible options to recover the funds that were taken during the recent hack associated with the Lazarus Group.

During a discussion on X Areas on February 22, Zhou detailed the exchange’s approach, which includes a bounty initiative, collaboration with law enforcement, and consultations with the Ethereum Foundation to identify potential solutions.

Zhou Addresses Ethereum Blockchain Rollback Possibility

Zhou spoke about the possibility of reverting the Ethereum blockchain to mitigate the effects of the February 21 hack.

“I’m not sure if it’s a decision for one individual,” Zhou remarked, highlighting the necessity of community input in any potential rollback decision.

The Ethereum network experienced a similar situation in 2016 after the DAO hack, which resulted in a hard fork and the eventual emergence of Ethereum Classic.

However, Ethereum core developer Tim Beiko has warned against the crypto community’s calls to revert the Ethereum network to its state before February 21.

In a post on X on February 22, Beiko explained that while the proposal may seem reasonable to some, it is technically intricate and could lead to significant repercussions.

The Bybit hack transpired following a transfer from the exchange’s multisig wallet to a hot wallet, which appeared legitimate but contained malicious code that modified the smart contract logic to misappropriate funds.

Beiko pointed out that the compromised interface made the transaction appear normal, leading some in the crypto community to suggest a rollback to recover the stolen assets.

There will be no Ethereum rollback
For the same reason that BTC & SOL will also never roll back, as they are still public blockchains!
Those who “attack” ETH in this manner undermine the foundation of all crypto
In times like this, we should unify, not divide, crypto communities

— Justin Bons (@Justin_Bons) February 22, 2025

Beiko emphasized that this situation is distinct from the 2016 DAO incident, which resulted in an Ethereum hard fork.

In this instance, the transaction adhered to protocol rules and appeared standard, leaving no straightforward solution to reverse it without broader implications for the network.

Lazarus Group Holds $1.3 Billion in ETH

According to blockchain analytics firm Lookonchain, the Lazarus Group, believed to be connected to North Korea, currently possesses approximately 489,395 ETH—valued at around $1.3 billion—distributed across 54 wallets.

The group has reportedly been transferring the stolen assets between wallets to obscure their origins and launder the funds on-chain.

In response to the breach, Bybit has initiated a 10% bounty program, offering up to $140 million to white-hat hackers who assist in recovering the stolen assets.

Zhou also expressed appreciation to industry partners for their prompt actions and support following what is now regarded as one of the largest crypto hacks in history.

Other industry participants have joined the recovery efforts.

Tether CEO Paolo Ardoino announced the freezing of 181,000 USDT associated with the hack, while Bitget CEO Gracy Chen confirmed that the exchange would block transactions linked to wallets connected to the Lazarus Group.

We just froze 181k USDt linked to the ByBit hack.
May not be much but it’s honest work.
We continue to monitor.
Kudos to @zachxbt

— Paolo Ardoino (@paoloardoino) February 22, 2025

Importantly, security experts and community members shared practical advice to protect users’ assets in light of the hack.

“Stop,” the vice president of blockchain at Yuga Labs, posted several security recommendations on X, urging users to utilize multisignature wallets, hardware wallets, and transaction simulations for enhanced security.

The post Bybit CEO Vows to Recover Stolen Funds, Discusses Risk of Ethereum Blockchain Rollout appeared first on Cryptonews.