Bybit Launches $140 Million Bounty Program to Engage Ethical Hackers for Recovering Stolen Funds

• Bybit has launched a bounty program offering up to 10% of recovered funds to ethical hackers and cybersecurity experts, incentivizing efforts to reclaim $1.4 billion in stolen assets.

• Over $43 million worth of digital assets, including cmETH and USDT, has already been retrieved through industry collaboration, with Polygon’s security team playing a key role.

• Bybit’s initiative has drawn support from cybersecurity specialists and major industry players, with Tether also freezing $181,000 in USDT linked to the hack to curb further losses.

Bybit has unveiled a $140 million bounty program aimed at recovering $1.4 billion in stolen assets, marking a significant step in industry collaboration.

Bybit Engages Ethical Hackers in $140 Million Bounty Initiative

On February 22, Bybit announced a bounty program aimed at engaging ethical hackers and cybersecurity specialists to help recover the stolen assets. This initiative, which offers up to 10% of the recovered funds as a reward, positions Bybit to potentially distribute as much as $140 million if the full amount is successfully retrieved.

The exchange has outlined that the bounty will be distributed among individuals who provide valuable intelligence or play a direct role in asset recovery. Bybit CEO Ben Zhou has responded positively to the engaging interest from the cryptocurrency community, highlighting that numerous industry experts and organizations have already reached out to assist.

He emphasized the importance of collaboration in countering cyber threats, reaffirming Bybit’s commitment to strengthening its security framework. Zhou stated, “We want to officially reward our community who lent us their expertise, experience and support through the Recovery Bounty Program, and our efforts to make this difficult lesson a valuable one does not stop here. Bybit is determined to rise above the setback and fundamentally transform our security infrastructure, improve liquidity, and be a steadfast partner to our friends in the crypto community.”

Over $43 Million in Stolen Funds Recovered

Alongside the bounty announcement, efforts to reclaim lost assets have already yielded significant results. More than $43 million worth of digital assets has been secured, thanks to the concerted efforts of key industry players looking to thwart further losses.

Mudit Gupta, Chief Information Security Officer at Polygon, confirmed the recovery of 15,000 Mantle Restaked Ethereum (cmETH), valued at approximately $43 million. He stated that this successful retrieval was made possible through collaboration with the SEAL and Mantle teams, identifying a crucial security gap that enabled the asset recovery.

Gupta noted, “I saw the recovery possibility soon after the hack and SEAL connected me with the Mantle/mETH team who made it happen. Huge shoutout to SEAL, Mantle, and mETH teams for their quick action.”

In addition, the Mantle team confirmed proactive measures that prevented further unauthorized transactions. They blocked the exploiter’s address employing their eight-hour withdrawal delay protocol, which successfully secured the stolen funds.

Furthermore, stablecoin issuer Tether acted quickly by freezing $181,000 in USDT associated with the hack. Although regarded as a modest sum, Tether CEO Paolo Ardoino stressed the importance of industry cooperation in mitigating financial losses, stating, “We just froze 181,000 USDt connected to the ByBit hack. Might not be much but it’s honest work. We keep monitoring.”

Conclusion

Bybit’s market-leading initiative to enlist ethical hackers through a substantial bounty program showcases an evolving strategy in the crypto industry aimed at securing funds and enhancing cybersecurity measures. The collaborative efforts seen thus far indicate a strong response from the community, rendering hope for lost assets to be reclaimed effectively. As cyber threats grow more complex, the insistence on united fronts in defense against such risks is imperative. Bybit remains resolute in transforming this challenge into an opportunity for improved security and industry collaboration.