Weekly Report | The Wall Street Journal: Bybit incident is the largest theft in crypto history; Vitalik: Ethereum is a decentralized ecosystem, not a company; Coinbase CEO: An agreement has been reached with the SEC, which will withdraw the lawsuit and impose no fines
Bybit CEO: Even if the losses are irreparable, Bybit has the ability to fully compensate; Data: The stolen funds from Bybit involve over 400,000 ETH, more than 90,000 stETH, 15,000 cmETH, and 8,000 mETH; Strategy announced the issuance of $2 billion in convertible bonds to support future Bitcoin purchases.Organizer: Luan Peng, ChainCatcher
"What Important Events Happened This Week (2.17-2.23)"
On-chain analyst Yu Jin tweeted that the MELANIA token unlocking rules show that the team tokens have only a 30-day lock-up period, unlocking 3% after 30 days, and then unlocking 2.25% (about 22.5 million tokens) each month for the next 12 months. A total of 30% of the tokens will be unlocked within 13 months. From February 19 to 20, a total of 3% (about 30 million tokens) will be unlocked.
Binance founder Zhao Changpeng expressed detailed views on the recent hacking incident, stating, "We have observed a pattern where hackers are able to steal large amounts of cryptocurrency from multi-signature 'cold storage' solutions, as exchanges like Bybit, Phemex, and WazirX have encountered similar situations. In the recent Bybit case, hackers were able to make the front-end user interface display legitimate transactions, while the actual signatures pointed to another transaction. For other cases, based on limited information, it seems similar methods were employed.
What is more concerning is that the affected exchanges used different multi-signature solution providers. The hacker organization Lazarus Group has demonstrated extremely advanced and widespread infiltration capabilities. It is still unclear whether the hackers successfully infiltrated multiple signing devices, the server side, or both.
Some have questioned my previous suggestion to pause withdrawals as a standard security precaution (I tweeted this while on the shuttle bus to the airport). My intention was to share a practical approach based on experience and observation, but there is no absolute right or wrong in this practice. My guiding principle has always been to lean towards the safer side. After any security incident, all operations should be paused to ensure we fully understand what happened, how the hackers infiltrated the system, which devices were compromised, and only after triple-checking for safety should operations resume.
Of course, pausing withdrawals may trigger more panic. In 2019, after a significant hacking incident of $40 million, we paused withdrawals for a week. When we resumed withdrawals (and deposits), the deposit volume actually exceeded the withdrawal volume. This does not mean that this method is better; each situation is different and requires judgment. I tweeted to share potentially effective practices, intending to express timely support. I believe Ben made the best decision based on the information at hand.
Ben maintained transparent communication and a calm attitude while handling this challenging situation. This stands in stark contrast to other CEOs lacking transparency, such as those from WazirX and FTX.
The cases mentioned here are all different. FTX was a fraud, and as for WazirX, I will refrain from commenting due to ongoing litigation.
Most importantly, we should never take security for granted. It is important to understand security knowledge so that you can choose the right tools for your needs. To this end, I will share an article I wrote a few years ago. Although some of it is outdated, the basic concepts still apply. Stay safe (SAFU)!"
Previously, there were rumors in the community that a certain cryptocurrency exchange was negotiating a sale. Binance co-founder He Yi posted on platform X, seemingly responding to the related news, stating: "So the crisis PR strategy of competitors is to buy articles in bulk to create rumors about Binance to divert attention? Since Bitcoin's price broke new highs, trading platforms, as a business model established for ecological verification, will have institutions asking Binance every month if they accept investments and partnerships according to the principle of leading investments. We do not rule out introducing strategic partners and are open to mergers and acquisitions. If other exchanges have sale plans, we welcome contact."
OKX President Hong Fang stated that the hacker address involved in the Bybit theft case has been added to OKX's blacklist, and engineers will closely monitor these addresses. If there is any movement of funds, immediate action will be taken.
The OKX team is also in contact with the Bybit team to provide any IT security and liquidity support they can offer at this time.
According to Shanghai Securities News, Zhou Xiaoqian, Executive Deputy Director of the Shanghai Municipal Financial Office, stated at the press conference for the "Top Ten Events in the Construction of Shanghai International Financial Center in 2024" on February 14 that they will promote the innovative application of cutting-edge technologies such as artificial intelligence large models and blockchain in the financial sector. At the same time, they will deepen the pilot program for digital renminbi and promote innovative projects such as the "Multilateral Central Bank Digital Currency Bridge" and bilateral business channels.
6. Bybit CEO: Hackers are converting stolen funds into Bitcoin through the Chainflip cross-chain bridge and will launch a bounty program targeting cross-chain bridges
Bybit CEO Ben Zhou disclosed that hackers are converting stolen funds into Bitcoin through the Chainflip cross-chain bridge. Zhou published several suspicious transaction hashes and the hacker's Bitcoin receiving address, while calling on cross-chain bridge service providers to assist in stopping the fund transfer.
Zhou stated that Bybit will soon launch a bounty program to reward those who help track or stop the fund transfer and ultimately facilitate the recovery of the funds.
7. Argentinian President Milei: Did not promote but merely shared cryptocurrency information
Argentinian President Milei stated on a television program: "I acted in good faith and ended up being attacked. Did the country lose? No. Did Argentinians lose? At most four or five. The vast majority of investors are Chinese and Americans.
I share this information just like I have shared hundreds of things before. My tweet was sent three minutes after the currency was created because I am passionate about these matters and understand them. These people are volatile traders who know what they are doing.
Saying that 44,000 people were affected is false; at most, only 5,000 people were. The likelihood of involving Argentinians is very small. These are all very professional people in this financial tool. Those involved are very clear about the risks they are taking— they are volatile traders. This is a private matter between individuals, and they participated voluntarily.
I did not promote LIBRA; I merely shared information about LIBRA. I did this because I am a firm technological optimist. Any initiative that can improve financing for tech entrepreneurs attracts me. I did not make a mistake because I acted in good faith. But when I saw the consequences, I realized that I still have a lot to learn. I need to understand that after becoming president, I should still act as I did before. Unfortunately, this situation made me realize that I need to raise my standards and not be so easily accessible."
8. Wall Street Journal: Bybit incident is the largest theft case in cryptocurrency history
According to the Wall Street Journal, the Bybit theft incident is the largest single theft case in cryptocurrency history, with stolen assets valued at over $1.4 billion due to this hacking attack.
After the incident, Bybit announced that it had reported the case to the relevant authorities, and its CEO Ben Zhou stated that all functions and products of Bybit are still operating normally, and the exchange is solvent and will fully cover customer losses. As of now, all withdrawal requests from Bybit have been processed, and the withdrawal system has returned to normal speed.
According to Bloomberg, cryptocurrency security platform Blockaid recently completed $50 million in Series B financing, led by Ribbit Capital, with participation from GV (formerly Google Ventures) and existing investors Variant and Cyberstarts. This financing will help Blockaid address the growing risk of cybercrime in the digital asset space.
In 2024, Blockaid successfully intercepted 71 million potential attacks, preventing losses of $5.3 billion. The company expects that as user growth and token prices rise, cyber attack incidents will surge to "hundreds of millions" in 2025. Blockaid plans to use this funding to expand operations and increase R&D investment, with the expectation of doubling its workforce this year. The company's CEO Ido Ben-Natan stated that due to changes in the regulatory environment in the U.S., demand has surged, and the company is currently facing a staffing shortage.
10. Bybit CEO: Even if losses are irretrievable, Bybit has the ability to fully compensate
Bybit CEO Ben Zhou stated on platform X that Bybit is solvent, and even if the losses from this hacking incident are irretrievable, all customer assets have 1:1 support, and we can make up for the losses.
11. Strategy announces issuance of $2 billion convertible bonds to support future Bitcoin purchases
According to The Block, Strategy (formerly MicroStrategy) plans to issue $2 billion in zero-interest convertible senior bonds for general corporate purposes, including the acquisition of Bitcoin. These bonds will mature on March 1, 2030, and can be settled in cash, Class A common stock, or a combination of both. The company also grants initial purchasers an option to purchase an additional $300 million in bonds.
Previously, Strategy issued a profit warning in its 10-K filing, primarily due to a $1.79 billion impairment loss on digital assets. The company warned that if the market value of Bitcoin declines significantly, it could affect its ability to repay debts and liquidity, forcing it to sell Bitcoin at unfavorable prices.
In 2024, Strategy acquired approximately 258,320 BTC and currently holds 478,740 BTC, valued at over $46 billion. The company stated that it may rely on equity or debt financing to meet its financial obligations, and success will depend on the market value of Bitcoin.
12. ZachXBT: Confirms Bybit fund outflow is a security incident
ZachXBT posted on his personal Telegram channel that his sources confirm the Bybit fund outflow is a security incident.
Additionally, ZachXBT reminded relevant personnel from major exchanges: It is recommended to blacklist the following EVM addresses.
0x47666fab8bd0ac7003bce3f5c3585383f09486e2
0xa4b2fd68593b6f34e51cb9edb66e71c1b4ab449e
0x36ed3c0213565530c35115d93a80f9c04d94e4cb
0x1542368a03ad1f03d96D51B414f4738961Cf4443
Earlier reports indicated that on-chain detective ZachXBT posted on his personal Telegram channel that he detected suspicious fund outflows from Bybit exceeding $1.46 billion, with further information to be updated later. mETH & stETH are currently being exchanged for ETH on DEX.
13. Report: Bitcoin mining contributes $4 billion and 31,000 jobs to the U.S. economy
According to TheMinerMag, a recent report released by the Perryman Group shows that Bitcoin mining has created over 31,000 jobs in the U.S., generating over $4.1 billion in total output annually. The U.S. accounts for about 40% of the global Bitcoin hash rate.
The report emphasizes that Texas is the biggest beneficiary of Bitcoin mining, with annual economic activity estimated at $1.7 billion, creating over 12,200 jobs. Georgia's annual total output is $316.8 million, while New York contributes $225.9 million.
It is reported that the report was commissioned by the Texas Blockchain Council and the Digital Chamber, a non-profit organization in the industry.
14. Data: Bybit stolen funds involve over 400,000 ETH, over 90,000 stETH, 15,000 cmETH, and 8,000 mETH
According to Onchain Lens, ZachXBT monitored Bybit's security incident, with funds valued at $1.44 billion being withdrawn, including:
- 401,347 ETH, valued at $1.12 billion;
- 90,376 stETH, valued at $253.16 million;
- 15,000 cmETH, valued at $44.13 million;
- 8,000 mETH, valued at $23 million.
15. Vitalik: Ethereum is a decentralized ecosystem, not a company
Vitalik stated: "I think Ethereum is a decentralized ecosystem, not a company. If Ethereum becomes a company, we will lose most of the meaning of Ethereum's existence. The role of a company is to be a company.
In fact, there are many large companies in the Ethereum ecosystem: Consensys, various client teams (Nethermind, Nimbus, etc.), Coinbase, L2 teams (including those like Aztec and Intmax, whose privacy technology is very interesting and underestimated). The best way is to find ways to give these companies more opportunities to realize the advantages of being a company, with the foundation playing a coordinating role."
16. Coinbase CEO: Has reached an agreement with SEC, SEC will withdraw the lawsuit and not impose fines
Coinbase CEO Brian Armstrong announced, "We have reached an agreement with SEC staff to dismiss their lawsuit against Coinbase. Once we receive approval from the committee (we have been told it is expected next week), this will be a complete settlement with a $0 fine, and our business will not change."
17. Foreign media: SEC is prioritizing cryptocurrency lawsuits with closer deadlines
FOX Business reporter Eleanor Terrett stated that according to several legal sources, the SEC has been prioritizing cases with court deadlines, which explains why we have not yet seen pause requests in the Ripple and Kraken cases.
The next court deadline for Ripple is April 16, while Kraken's deadline seems to be March 31. Binance's case has been postponed to April 14, and Lejilex's case to April 11, while Coinbase and the SEC have agreed to extend the deadline, allowing the SEC to respond to Coinbase's interim appeal request by March 14.
SEC leadership may expect that Trump-nominated Chair Paul Atkins will be confirmed by then. In the meantime, the cryptocurrency special working group, Congress, and the Presidential Working Group on Digital Assets may be working to fill the regulatory gaps that led to these lawsuits being filed in the first place.
18. U.S. SEC staff has agreed in principle to dismiss the lawsuit against Coinbase
According to Cointelegraph, U.S. Securities and Exchange Commission (SEC) staff have agreed in principle to dismiss the lawsuit against Coinbase, but final approval is still needed.
19. Nigeria sues Binance for $81.5 billion in economic damages and taxes
According to Reuters, Nigerian authorities have filed a lawsuit against Binance, claiming $79.5 billion in economic damages and $2 billion in unpaid taxes. The Nigerian Federal Inland Revenue Service (FIRS) accuses Binance of operating illegally in the country.
The Nigerian Federal Inland Revenue Service stated that Binance's operations in the country are illegal. Previously, in March 2024, the agency had sued Binance on four tax violation charges, including failure to pay corporate income tax and failure to file tax returns.
Sonic co-founder Andre Cronje posted on platform X, stating that Sonic's vision for this year is quite simple:
- Fee monetization (90% of fees will go to applications, rather than validators and MEV)
- Fee subsidies (eliminating the fee barrier for users to enter)
- Dynamic fees (applications can set fees for users)
- Native economy and account abstraction (no need for wallets or fees)
The above content mainly involves two points:
- Making it as easy as possible for users to try out applications launched on Sonic (removing all barriers to entry and use)
- Helping our application developers earn significant profits.
21. Aptos research director accuses Monad of plagiarism, Monad co-founder denies
Aptos research director Alexander Spiegelman posted on X, stating: "I don't understand why Monad is spending so much time plagiarizing Aptos technology. It's all open source, and there are already many peer-reviewed papers. Instead of being secretive, it would be better to directly plagiarize openly."
In response, Monad co-founder James Hunsaker stated: "I was researching Software Transactional Memory (STM) in a Haskell environment long before you were out of diapers; BlockSTM is a simple extension of these things. I have never looked at any Aptos code; in fact, if it weren't for you posting this nonsense, I wouldn't even think of Aptos."
22. Binance Alpha adds B3, FLUID, VVV, TOKEN, DRIFT, CPOOL
According to official news, Binance Alpha has added B3, FLUID, VVV, TOKEN, DRIFT, CPOOL.
23. Vitalik: My parents bought ETH after Ethereum was born and have been following and supporting me
Ethereum co-founder Vitalik stated during a text AMA held on the Tako platform that his parents bought ETH after Ethereum was born and have been following and supporting him. Before Ethereum was born, they also worked hard to arrange and purchase a lot of materials to learn coding.
24. Washington Post: Musk's government efficiency department seeks to obtain taxpayers' personal data
According to the Washington Post, two insiders revealed that the government efficiency department (DOGE) led by Musk is seeking access to the IRS system, which includes detailed financial information on every taxpayer, business, and nonprofit organization in the U.S., raising deep concerns within the IRS.
Under pressure from the White House, the IRS is considering signing a memorandum of understanding that would allow government efficiency department officials broad access to the tax agency's systems, properties, and datasets. This includes the Integrated Data Retrieval System (IDRS), which allows tax agency employees to access IRS accounts (including personal identification numbers) and banking information.
25. U.S. initial jobless claims for the week ending February 15 were 219,000, expected 215,000
According to Jin10, initial jobless claims in the U.S. for the week ending February 15 were 219,000, expected to be 215,000, with the previous value revised from 213,000 to 214,000.
"What Great Articles Are Worth Reading This Week (2.17-2.23)"
1. Saving Bybit: Supporting $320 million, who are the white knights everyone is talking about?
Within 12 hours of being hacked for nearly $1.5 billion, Bybit CEO Ben Zhou stated that the withdrawal system has fully returned to normal.
In the face of the largest theft in cryptocurrency history, in addition to the textbook crisis and public relations handling by the Bybit team, various parties supporting Bybit are also alleviating the immense pressure on the crypto ecosystem.
Although there is currently only one project introduction on Twitter, and the founder and investors are unknown, Unit has already attracted the attention of many crypto influencers, including Zhu Su. Since its launch, it has attracted over $50 million worth of BTC inflow into Hyperliquid. Crypto KOL @chameleon_jeff even reposted and commented: The launch of Unit brings Hyperliquid one step closer to accommodating all financial assets.
On February 12, former ParaFi Capital partner Santiago Roel Santos announced Inversion Chain on social media. He stated that Inversion will focus on "on-chain actual GDP," allowing businesses to fundamentally improve their operations and performance through on-chain integration. Inversion Chain will promote the world's first crypto-native private equity strategy. The specific approach is to acquire traditional businesses and anchor them on the Inversion chain.
Previously, in November last year, Santiago Roel Santos announced the launch of the private equity fund Inversion Capital, which was also the embryonic stage of the Inversion Chain concept. At that time, Santiago had already decided to acquire traditional businesses and use crypto technology to transform their operations. He particularly emphasized "acquisition" rather than collaboration and acceptance, which also means that Inversion Chain will be a customized, sovereign L1.
It is reported that Inversion Chain will adopt Avalanche L1's customized chain technology. Besides the founder and the initial concept of the project, Inversion currently has nothing else. In Santos's recent posts, he is also recruiting a CTO and other team members. However, this seemingly ambitious project has already taken root.
4. Reflections on the LIBRA incident: Is a new round of disenchantment beginning?
While we all know that PVP will not disappear, and fast-paced games will continue, at least at this stage, a new round of disenchantment in the crypto market may be about to begin?
Sam Bankman-Fried elaborated on his views regarding the FTX bankruptcy, legal battles, the political situation in the U.S., and the future of the cryptocurrency industry in an interview.
6. Saving Bybit: Supporting $320 million, who are the white knights everyone is talking about?
Within 12 hours of being hacked for nearly $1.5 billion, Bybit CEO Ben Zhou stated that the withdrawal system has fully returned to normal.
In the face of the largest theft in cryptocurrency history, in addition to the textbook crisis and public relations handling by the Bybit team, various parties supporting Bybit are also alleviating the immense pressure on the crypto ecosystem.
7. Aptos accuses Monad of plagiarism, stealing technology or riding the wave?
Perhaps influenced by the announcement of HyperEVM's launch, the competing L1 Monad finally couldn't sit still. Just one day after HyperEVM went live, this project, which raised $225 million led by Paradigm last April, finally launched its testnet.
However, amid the community's cheers and various airdrop tutorials, another L1 competitor, Aptos, directly posted on social media platform X, accusing Monad of plagiarizing Aptos technology. Thus, a war of words began.
8. How does North Korea cultivate world-class hackers to steal $1.5 billion in cryptocurrency again?
In an era where keyboards replace missiles, young hackers' keyboards will become the Damocles sword of cryptocurrency.
9. Bybit stolen nearly $1.5 billion, the largest theft in human history, how did North Korean hackers do it?
Large fund security management must use institutional-grade custody solutions.
10. The story behind the Lazarus Group, the mastermind of the largest heist in Web3 history
Bybit was hacked, resulting in the theft of approximately $1.5 billion in on-chain assets. Four hours after the incident, on-chain detective ZachXBT submitted solid evidence confirming that the attack on Bybit was carried out by the North Korean hacker organization Lazarus Group.
