Just In: Bybit Launches $140M Recovery Bounty for Crypto Hack Investigation

Bybit has launched a Recovery Bounty Program to track and recover funds stolen in a major security breach. The exchange is offering 10% of recovered funds as a reward, which could amount to $140 million in the case of full recovery. The initiative invites cybersecurity experts and blockchain analysts to assist in identifying and retrieving the stolen assets.

Bybit’s $140M Recovery Bounty and Response

Bybit has officially launched a Recovery Bounty Program, promising 10% of recovered funds to ethical hackers, cybersecurity experts, and blockchain analysts who contribute to fund retrieval efforts. The total amount of stolen funds is valued at over $1.4 billion, making this one of the largest crypto thefts ever recorded.

Bybit’s co-founder and CEO, Ben Zhou, acknowledged the industry’s support in response to the breach. “Within 24 hours of the event, we were overwhelmed with support from some of the best people and organizations in the industry,” he said. Zhou emphasized that Bybit is committed to strengthening its security measures, improving liquidity, and working closely with the crypto community to prevent future breaches.

The company has also engaged with partners, including Galaxy Digital, FalconX, and blockchain security firms, to assist in the recovery process. Bybit recently spent $100 million USDT to purchase 36,893 ETH at $2,711 per ETH through over-the-counter (OTC) trades with Galaxy Digital and FalconX.

Lazarus Group’s Involvement and Ongoing Investigations

Blockchain investigators, including ZachXBT and Arkham Intelligence, have provided evidence linking the Bybit hack to the North Korean-affiliated Lazarus Group. Their research shows that the attackers used test transactions and laundering methods similar to those seen in previous incidents.

Arkham confirmed that ZachXBT submitted definitive proof, identifying the Lazarus Group as the perpetrators. The group has been responsible for several high-profile crypto attacks, including those on Axie Infinity’s Ronin Bridge and Harmony’s Horizon Bridge.

Concurrently, additional evidence has linked the stolen funds to laundering activities on the Tron blockchain, which were also used in the Phemex hack. Analysts discovered an overlap address (0xd555789b146256253cd4540da28dcff6e44f6e50) connecting transactions from Bybit, Phemex, and BingX, further confirming that the same group was involved in all three attacks.

Subsequently, efforts to retrieve the stolen funds have already yielded some results. On Saturday, February 22, 2025, Mantle’s liquid restaking protocol, mETH Protocol, announced the recovery of 15,000 cmETH tokens worth approximately $43 million at current market prices.

Industry Leaders Acknowledge Bybit’s Transparency

The crypto industry has shown strong support for Bybit following the breach. Several exchanges and blockchain security firms, including Bitget, Pionex, MEXC, SoSoValueCrypto, Solana, TON Blockchain, and Blockchain UAE, have expressed solidarity and offered assistance.

Former Binance CEO Changpeng Zhao (CZ) also praised Bybit CEO Ben Zhou for his handling of the crisis.

“Ben did a good job maintaining transparent communication and calmness in dealing with a challenging situation. That shows a sharp contrast to other less transparent CEOs, like WazirX, FTX, etc.,” CZ stated.

Bybit is working closely with partners and law enforcement agencies to track and recover the stolen assets. Moreover, Tether’s CEO, Paolo Ardoino, has announced that the company has frozen $181,000 in USDT linked to the Bybit hack. “Might not be much, but it’s honest work,” he stated, confirming ongoing monitoring of suspicious transactions.