A major incident has occurred in the cryptocurrency sector, raising significant concerns among investors and stakeholders. The Lazarus Group, allegedly backed by North Korea, has reportedly stolen over $1.4 billion in Ethereum from the Bybit exchange, leading to a ripple effect in the market.

The hacker now possesses a wallet containing 437,700 ETH, valued at around $1.2 billion, which accounts for 0.36% of Ethereum’s total circulating supply. This event has sparked fears reminiscent of the FTX exchange collapse in 2022. Notably, the hacker’s holdings exceed those of Ethereum co-founder Vitalik Buterin, who has approximately 240,081 ETH worth $655.42 million, and the Ethereum Foundation, which holds about 223,147 ETH valued at $608 million.

In response to the breach, Bybit has implemented measures to restore its reserves. The exchange announced that it has fully closed the ETH gap through loans and deposits, ensuring a 1:1 backing of client assets. To assist in recovering the stolen funds, Bybit has launched a bounty program, offering up to 10% of the recovered amount as a reward to cybersecurity experts. As a result of the market’s reaction, Ethereum’s price has fallen to $2,720.97, reflecting a 3.60% decrease in the last 24 hours.

📎 Related coverage from: benzinga.com