- Bybit offers 10% recovery reward for tracking stolen funds.
- Mantle’s protocol recovers $43M worth of stolen assets.
- Tether freezes $181K USDT linked to the Bybit breach.
Bybit has launched a $140 million bounty program in response to a historic hack that saw the loss of over $1.4 billion in liquid-staked Ether (ETH) and MegaETH (mETH).The attack, one of the largest in crypto history, prompted swift actions from Bybit and industry partners to secure funds and track the stolen assets.
Bybit’s Recovery Bounty
Bybit announced a Recovery Bounty Program which offers 10% of recovered assets to security experts to recover the stolen funds. The Recovery Bounty Program demonstrates Bybit’s commitment to combat crypto crime and secure the future of the space. With over $1.4 billion in compromised funds, the bounty could total up to $140 million which offers a powerful incentive to the crypto community to help recover the stolen assets.
This initiative aims to incentivize hackers, analysts, and blockchain investigators to track and recover the stolen crypto.
Agile Reaction Saves the Day Amid $1.4B Hack
After detecting the breach, Bybit’s security team immediately locked down its system and secured user funds. They coordinated with well-known cybersecurity firms such as Antalpha Global, Bitget, and MEXC, to manage the crisis.
Blockchain security companies blacklisted the hacker’s wallet addresses to prevent further unauthorized transfers, while Chainalysis tracked the movements of stolen funds in real time. The hack highlights the industry’s resilience and the importance of the crypto industry’s collaborative effort to manage security threats.
The involvement of top-tier institutional clients, such as Wintermute, Cumberland, and GSR Markets, helped stabilize the market. Their continued trading helped to prevent panic across the broader crypto market. Bybit’s CEO, Ben Zhou, expressed gratitude for the support received, highlighting the industry’s collective resilience in the face of malicious attacks.
Investigation Identifies ‘Hack’ Perpetrators and Means
Blockchain intelligence firms like ZachXBT and Arkham Intelligence have linked the breach to the North Korean-affiliated Lazarus Group, which has previously executed high-profile crypto exchange hacks.
The investigation has also revealed that the stolen funds are being laundered across multiple platforms such as the Tron blockchain. An overlap address identified in the laundering process connected the Bybit, Phemex, and BingX hacks. This connection reinforces the involvement of the same group behind all three incidents which highlights a persistent threat to the crypto ecosystem.
Funds’ Recovery Progress
The recovery process has already shown some progress despite the complexity of the situation. On February 22, 2025, Mantle’s liquid restaking protocol, mETH Protocol successfully recovered 15,000 cmETH tokens, valued at approximately $43 million at the current market price. Additionally, Tether CEO Paolo Ardoino confirmed that the company froze $181,000 in USDT related to the hack.
Bybit continues to collaborate with law enforcement and blockchain partners to track and recover the remaining stolen assets.