Cross-chain bridge Chainflip announced it is upgrading its protocol to block funds from the Bybit hacker from illicitly moving through its platform.
Chainflip to Block Bybit Hacker Funds
— CHAINFLIP LABS (@Chainflip) February 24, 2025
Chainflip revealed that most of the code for the upgrade has been written, and the protocol is now in the testing phase. The upgraded version is expected to go live within 24-72 hours. This supportive move comes after it was discovered that the Bybit hacker was attempting to launder stolen funds through Chainflip.
In an official announcement, Chainflip stated, “We hope these measures serve as an inspiration for other DeFi protocols, who could be taking similar steps to cut the cancer of crime out of the industry.”
Bybit CEO Ben Zhou, had previously shared on X that the exchange had detected hackers trying to move assets to the BTC network via Chainflip. Zhou appealed for help from the cross-chain bridge project, asking them to prevent further movement of the stolen funds to other chains. He also mentioned that Bybit would soon release a bounty program to reward anyone who helps block or trace the funds, aiding in recovery efforts.
Blockchain analytics firm Arkham Intel reported that the Bybit hacker was making 2-3 transactions per minute, pausing every 45 minutes for a 15-minute break. The hacker moved ETH from one address at a time before proceeding to the next one.
Bybit was hacked on Friday by the notorious North Korean Lazarus Group, which caused a significant setback for the exchange. However, Bybit acted quickly to resolve the issue, with several prominent figures in the crypto world, including Binance CEO Changpeng Zhao and Bitget CEO Gracy Chen, offering support. Their efforts were praised for the transparency shown throughout the crisis. In a notable gesture of solidarity, Bitget transferred 40,000 ETH (worth $105 million) to Bybit to assist with the recovery, which was fully repaid by Bybit today.
Also Read: Bybit Attack: Hacker Launders Funds via eXch Exchange, Despite Denials
