Cryptocurrency exchange Bybit’s billion-dollar cybersecurity exploit was a setback for institutional adoption of crypto staking, Bohdan Opryshko, staking services provider Everstake’s chief operating officer, told Cointelegraph.
On Feb. 21, the Lazarus Group, a hacking operation based in North Korea, gained access to Bybit’s wallet credentials and stole some $1.4 billion worth of liquid staked Ether (STETH ($2,297.61)). It was the industry’s largest-ever hack.
High-profile cybersecurity breaches dissuade institutional investors from allocating to crypto, including staking Ether (ETH ($2,298.35)), Opryshko said.
“When an auditor or a potential institutional investor evaluates, for instance, an ETH [exchange-traded fund] and sees a billion-dollar hack, their legal and compliance teams are likely to freeze any plans to allocate funds into such assets,” Opryshko told Cointelegraph.
The Bybit hack may also accelerate an ongoing exodus by stakers from centralized crypto exc… creator solana token
