Bybit Implements Blacklisted Wallet API After Major Crypto Hack

According to Cointelegraph, Bybit exchange has introduced a blacklisted wallet application programming interface (API) on February 23, following a significant hack by the Lazarus Group that resulted in the loss of over $1.4 billion in cryptocurrency from the centralized exchange. The newly implemented blacklist aims to aid white hat hackers in recovering the stolen funds as part of Bybit's bounty program. This list will be updated regularly to address emerging threats. Bybit CEO Ben Zhou expressed optimism about the collaborative efforts within the crypto community, stating, "I am energized by the incredible camaraderie onchain and in real life. This can be a transformative moment for our industry if we get it right. Together, we can build a stronger defense system against cyber threats." The announcement of the bounty program is a component of a larger initiative to recover the stolen assets. Ben Zhou disclosed that Bybit is collaborating with law enforcement officials in Singapore and engaging in discussions with the Ethereum Foundation to explore potential solutions. In the wake of the hack, there have been calls within the crypto community to roll back the Ethereum blockchain to a state prior to the February 21 breach. During a February 22 X Spaces event, Zhou was questioned about the feasibility of a chain rollback to invalidate the stolen funds. He responded that while he was uncertain if a rollback was the appropriate course of action, any decision regarding such a measure should be determined by a community vote rather than by a single individual. However, Ethereum core developer Tim Beiko opposed the idea, labeling it technically unfeasible in this instance. Beiko explained that the compromised interface misrepresented the transaction's intent, but it did not violate any protocol rules. He warned that a rollback could have far-reaching implications for the ecosystem, causing significant disruption. Beiko concluded that there is no straightforward method to recover the funds by reverting the blockchain to a previous state, noting that the 2016 DAO hack, which set a precedent for Ethereum rollbacks, was a distinctly different scenario.