Bybit and Safe Custody Are at Odds on Who's to Blame for $1.5B Hack

A heated standoff has erupted between two prominent cryptocurrency custodians, Bybit and Safe Custody, over the responsibility for a massive hacking incident that resulted in the theft of $1.5 billion worth of digital assets.

The dispute mirrors that of WazirX and Liminal Custody, which blamed each other following a $230 million exploit last July. However, the latest incident has taken the breach to unprecedented heights, with hackers making off with an astonishing $1.5 billion in assets.

Bybit, a Singapore-based cryptocurrency exchange and custodian, has taken responsibility for the security breach, which is believed to have occurred due to a combination of human error and technical vulnerabilities.

"We take full responsibility for the incident and are committed to taking all necessary steps to prevent similar breaches in the future," said Bybit in a statement. "We are cooperating fully with law enforcement agencies and working closely with our partners to restore the stolen assets."

Safe Custody, on the other hand, has refused to accept blame for the incident, claiming that they were not aware of any security vulnerabilities in their system.

"We have no knowledge of any security breaches or vulnerabilities in our system," said Safe Custody. "We are cooperating with law enforcement agencies and working closely with Bybit to investigate the incident and restore the stolen assets."

The dispute highlights the challenges faced by cryptocurrency custodians in maintaining the security of digital assets, particularly in light of increasing regulatory scrutiny.

As the cryptocurrency market continues to grow and evolve, it is likely that we will see more incidents like this in the future. However, with increased cooperation and communication between custodians and law enforcement agencies, it is possible that these types of breaches can be minimized and mitigated.

In the meantime, Bybit and Safe Custody are working together to restore the stolen assets and prevent similar breaches from occurring in the future. As the cryptocurrency industry continues to navigate this complex landscape, one thing is clear: transparency, cooperation, and accountability will be key to ensuring the security of digital assets.