In a dramatic turn of events in the cryptocurrency world, the exchange Bitget has stepped up to assist Bybit following a devastating hack that resulted in the theft of approximately $1.4 billion in ether (ETH). This collaboration highlights the importance of community support in the ever-evolving crypto landscape.
Significant Support from Bitget
Bitget has transferred a substantial amount of 40,000 ETH, valued at around $105 million, directly to Bybit. This gesture aims to provide critical assistance as Bybit deals with the aftermath of the large-scale security breach. Notably, the funds come from Bitget’s own reserves rather than user deposits, which remain safe and can be verified through the exchange’s proof of reserves, according to Bitget’s CEO, Gracy Chen.
“At Bitget, we firmly believe in supporting the community and fostering the growth of the cryptocurrency ecosystem,” Chen expressed in a communication with CoinDesk. She further assured that Bitget is ready to offer additional support if necessary.
The Hack and Its Immediate Aftermath
The breach, believed to have been orchestrated by a North Korean entity, sent shockwaves throughout the crypto community. Following the hack, Bybit experienced an unprecedented surge in withdrawal requests, successfully processing an impressive 99% of them despite the intense pressure.
As the situation unfolded, a portion of the stolen funds began to circulate on Saturday afternoon in Asia. Over 5,000 ETH was funneled through eXch mixer, a service designed to obscure wallet addresses, before being transferred to the bridge protocol, ChainFlip, where it was converted into bitcoin (BTC).
Challenges for Decentralized Systems
In a post on X, ChainFlip acknowledged the challenges of halting fund movements, explaining that it operates as a fully decentralized application reliant on automated smart contracts. However, it took precautionary measures by disabling some frontend services to mitigate the situation.
Meanwhile, Bitget has proactively blacklisted wallets associated with the hackers responsible for the theft. “We will block any transactions originating from illicit addresses to our exchange once they are identified. Our security team and researchers are actively monitoring these activities,” Chen stated.
Resilience Demonstrated by Bybit
Despite the significant setback, Bybit has demonstrated resilience by processing over 350,000 withdrawal requests and restoring normal operations. This swift recovery highlights the exchange’s commitment to maintaining user trust and operational stability in the wake of such a severe incident.
