Bybit Hackers Hit a Wall: Chainflip Tightens Security With Protocol Update

The update, version 1.7.10, is designed to block suspicious transactions and protect liquidity providers from exposure to stolen assets.

In a statement on February 24, Chainflip explained that allowing stolen funds to pass through its system could put liquidity providers and regular users at risk. After detecting transactions linked to the Bybit breach, the team quickly restricted access to its main interface to prevent further activity.

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Chainflip has been working with its service providers to ensure stolen assets do not pass through its decentralized network. The update is expected to go live by February 27, following internal testing.

Version 1.7.10 expands existing security tools for brokers, giving them the ability to block Bitcoin BTC $87,052.87 transfers based on risk analysis. If a deposit is flagged, the system will automatically return the funds to the sender’s refund address. This feature is now being extended to Ethereum ETH $2,412.32 and all ERC-20 tokens.

With this update, wallets connected to the Bybit hack or similar incidents will no longer be able to use Chainflip’s services. The company also plans to introduce additional security features as needed to further protect users.

Addressing the crypto industry’s response to the Bybit hack, Chainflip stated that businesses do not need regulators to enforce these measures—there are already strong financial and ethical reasons to act.

Recently, Bybit CEO Ben Zhou confirmed that the company has already filled the $1.4 billion gap in its Ethereum holdings. How? Read the full story.