ZKP provides potential fixes after a bibit hack

The hackers behind the Bybit Hack were able to cash about $300 million, the $1.4 billion stolen $1.4 billion, despite industry efforts to prevent the industry.

Bybit Hack: 20% of stolen funds are “Dark”

Reports suggest that the cybercriminals behind Bybit Hack have won roughly $300 million out of the $1.4 billion digital assets they stole. Hackers have achieved this despite the crypto industry working together to stop them. Tom Robinson, co-founder of Crypto Investigator Elliptic, said the hackers are focusing on circumventing security experts trying to block stolen funds.

Robinson, who claims 20% of the funds has “darkened,” said the hacker activity his team can see suggests they work nearly 24 hours a day.

“Every minute is important for hackers trying to confuse the money trail and what they’re doing is very sophisticated,” the co-founder of Oval said.

As Bitcoin.com News previously reported, the North Korean-backed Lazarus group successfully swapped some of the stolen ether (ETH) for over 6,000 Bitcoin (BTC) because it was thought to be behind the Bibithack. The switch to a censorship-resistant BTC is said to make it nearly impossible for BYBIT to recover stolen funds.

Additionally, North Korea’s suspicions of hacking and laundry have made the mission of security experts more difficult to identify $40 million in stolen funds.

ZKPS is a shield against blindness

Meanwhile, the size of the Bibit Hack and the ability to avoid hackers’ defenses have sparked debate about what Web3 companies should do to prevent similar attacks in the future. Some believe that the transparency and industry cooperation seen after the attack are the best way to counter hackers.

However, critics argue that hackers, known to have been stolen for years before liquidating stolen funds, have already undermined this argument. Others, such as Nanak Nihal Khalsa, co-founder of Holonym, believe Zero Awareness Proof (ZKPS) could have prevented attacks caused by blind signatures on vulnerabilities in ledger hardware wallet devices.

It is said to be the foundation of a lot of privacy protocols, but Khalsa and others believe that blind signatures may be on borrowed time and must take steps to move the offenders further. Explaining how Holony was able to prevent the attack, Khalsa said:

“Our human wallets have the ability to prevent blind signing by displaying human-readable transactions in a hardware wallet instead of removable data.”

Unlike current solutions that are oversafe but potential, Karsa said ZKP solutions like Holonima can prove to be a much-needed “shield” that keeps signers informed without putting speed or security at stake.

ZKP proponents like Khalsa have no broad consensus on how the industry is moving from what is described as the biggest hack to date, but they argue that the technology can be involved in rebuilding trust in the industry.