The price of the world’s second-largest cryptocurrency, ether (ETH), has seen a notable increase of over 2.3% in just the past 24 hours. This rise stands in contrast to the broader CoinDesk 20 Index, which gained a modest 0.76% during the same period, while Bitcoin found itself in the red, down approximately 0.3%.
This uptick in ether’s value appears to coincide with recent news regarding Bybit, the cryptocurrency exchange that was subject to a significant security breach. Reports indicate that the North Korean hacking group Lazarus executed a hack resulting in the theft of around $1.5 billion worth of ether and staked ether. Following these developments, Bybit reportedly moved 100 million USDT into new addresses, with half of that amount being used to acquire 36,900 ETH through over-the-counter transactions.
According to crypto journalist Colin Wu, the moved funds, which equate to roughly $101 million, have subsequently been traced back to addresses linked to the exchange, as per Arkham Intelligence data. In an “ask me anything” session, Bybit’s CEO Ben Zhou emphasized the exchange’s robust asset base, claiming that the company holds assets that are “far greater than $1.5 billion,” with a cold wallet reportedly secured with nearly $3 billion in USDT.
In light of the hacking incident, the hacker is currently estimated to possess around 489,000 ETH, worth about $1.34 billion. This amount represents approximately 0.4% of ether’s total supply, positioning the hacker as the 14th-largest holder of the cryptocurrency.
The addresses tied to the hacker are now under strict surveillance within the cryptocurrency ecosystem and are blacklisted by major exchanges. According to StealthEX CEO Maria Carola, the stolen funds have been marked, creating significant barriers for the hacker. “Any attempt to transfer these funds to a major exchange would result in an immediate block,” she stated in an interview with CoinDesk.
As the situation evolves, some analysts have posited that the 0.4% of ETH supply held by the hacker is essentially rendered unusable, raising questions about the broader implications for the cryptocurrency market as well as for the future of ether’s value.
