Bybit CEO Vows to Recover Stolen Funds, Discusses Possibility of Ethereum Blockchain Rollout

Bybit CEO Ben Zhou has pledged to pursue all possible avenues to recover the funds stolen during the recent hack linked to the Lazarus Group.

Speaking during a Feb. 22 X Spaces discussion, Zhou outlined the exchange’s strategy, which includes a bounty program, cooperation with law enforcement, and consultations with the Ethereum Foundation to explore potential solutions.

Zhou Discusses Possibility of Ethereum Blockchain Rollout

Zhou addressed the possibility of rolling back the Ethereum blockchain to reverse the effects of the Feb. 21 hack.

“I’m not sure if it’s one man’s decision,” Zhou said, emphasizing the importance of community input in any potential rollback decision.

The Ethereum network faced a similar situation in 2016 following the DAO hack, which led to a hard fork and the eventual creation of Ethereum Classic.

However, Ethereum core developer Tim Beiko has cautioned against calls from the crypto community to roll back the Ethereum network to its pre-Feb. 21 state.

In a Feb. 22 X post, Beiko explained that while the proposal may seem reasonable to some, it is technically complex and could lead to significant consequences.

The Bybit hack occurred after a transfer from the exchange’s multisig wallet to a warm wallet, which appeared legitimate but contained malicious code that altered the smart contract logic to steal funds.

Beiko noted that the compromised interface made it seem like the transaction was normal, prompting some in the crypto community to advocate for 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 that "attack" ETH in this way weaken the foundation of all crypto

In times like this, we should unify, not divide, crypto communities 🕊️

— Justin Bons (@Justin_Bons) February 22, 2025

Beiko stressed that the situation differs from the 2016 DAO exploit, which led to an Ethereum hard fork.

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

Lazarus Group Holds $1.3 Billion Worth of ETH

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

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

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

Zhou also expressed gratitude to industry partners for their swift action and support following what is now considered one of the largest crypto hacks in history.

Other industry players have joined the recovery efforts.

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

We just froze 181k USDt connected to the ByBit hack.
Might not be much but it's honest work.
We keep monitoring.
Kudos to @zachxbt

— Paolo Ardoino 🤖 (@paoloardoino) February 22, 2025

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

“Quit,” vice president of blockchain at Yuga Labs, posted several security recommendations on X, encouraging users to employ multisignature wallets, hardware wallets, and transaction simulations for enhanced safety.