Bybit has launched a blacklisted wallet API to aid in the recovery of funds stolen in a $1.4 billion hack linked to the Lazarus Group.
Bybit has launched a blacklisted wallet API to aid in the recovery of funds stolen in a $1.4 billion hack linked to the Lazarus Group. The API lists suspicious wallet addresses, allowing security experts and white-hat hackers to track and potentially recover the stolen assets. Bybit is offering a bounty of up to 10% for those who successfully intercept transactions that lead back to the hackers. The blacklist will be regularly updated to address emerging threats.
Ben Zhou, Bybit’s CEO, highlighted the industry’s collective effort in tackling the attack, stating, “I am energized by the incredible camaraderie on-chain and in real life. This can be a transformative moment for our industry if we get it right.” The recovery efforts involve collaboration with cybersecurity firms, blockchain analytics companies, and major crypto exchanges. Thousands of tips have already been received from security professionals. Bybit is working with law enforcement agencies in Singapore and is in discussions with the Ethereum Foundation about potential solutions.
Several cybersecurity firms and blockchain security teams have joined the effort. Mandiant, Verichain, and Sygnia.co are conducting forensic analysis to understand the breach. ZeroShadow has deployed a global response team to trace bad actors and stolen funds, while Chainalysis, Elliptic, TRM, and Goplus have tagged exploit-related addresses to prevent hackers from laundering the funds. Crypto exchanges such as Binance, Coinbase, and Bitget, along with blockchain networks including Polygon, Arbitrum, Optimism, and AVAX, are working to restrict the movement of stolen assets.
Bybit is also developing a HackBounty platform to strengthen industry-wide efforts against cybercrime. Details about the initiative will be announced in the coming weeks. In the meantime, verified security partners can access the blacklist API through an automated system to improve response times and security measures.
Following the attack, some crypto community members called for an Ethereum blockchain rollback to reverse the hacker’s transactions. During a Feb. 22 X Spaces event, Zhou was asked about the possibility of such a rollback. He responded that it should be decided by the community rather than an individual or company. Ethereum core developer Tim Beiko rejected the idea, saying a rollback was not technically feasible. He explained that the exploit did not violate Ethereum’s protocol rules and that reversing the transactions would have major consequences for the network. He also pointed out that the 2016 DAO hack, which led to an Ethereum hard fork, was a very different case.
Bybit’s response to the attack continues to evolve as new information emerges. The company remains committed to strengthening security within the crypto industry, using its bounty program and blacklist API to support ongoing efforts to track and recover the stolen funds.
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