Interchain bridge protocol Chainflip has responded to Bybit CEO Ben Zhou’s request to freeze hacked funds.
Chainflip Says Funds Cannot Be Freezed
While Chainflip has taken steps to mitigate the situation, it noted that its decentralized structure prevents it from completely blocking, freezing or redirecting any funds.
“We have tried our best to deal with the current situation, but as a decentralized protocol, we cannot completely block, freeze or redirect any funds. However, we have currently shut down some front-end services to prevent the flow of funds,” he said.
Earlier, Bybit CEO Ben Zhou warned the community via social media that hackers were attempting to transfer stolen assets to the Bitcoin network via Chainflip. Zhou called on the cross-chain bridge project to help prevent further asset transfers and prevent funds from being moved to other chains.
Related News: BitMEX Founder Arthur Hayes Makes a Radical Suggestion on the Bybit Hack – If Accepted, It’s a Mess
Bybit has since announced plans to launch a bounty program to incentivize people who can help track or block stolen funds and ultimately help recover them.
Meanwhile, blockchain analysts have identified a direct on-chain connection between the Bybit hack and the recent Phemex hack. The Lazarus Group, a notorious hacking organization with ties to North Korea, reportedly mixed funds from the initial theft addresses in both incidents, suggesting coordination between the attacks.
*This is not investment advice.
Continue Reading: Cryptocurrency Platform Where Hackers Laundered Funds Responds to Bybit’s Call to Freezing of the Funds
