TOKENICATION_ is your reliable source for the latest news and analysis on cryptocurrencies. We provide up-to-date information on Bitcoin, Ethereum, and other digital currencies to keep you informed about the latest trends and help you make informed decisions.
Date: 2025-02-26 20:45:02
Meltem Demirors of Crucible Capital suggests that the recent hack on Bybit is more of a geopolitical concern than a reflection of cryptocurrency security weaknesses.
During an interview on CNBC's "Power Lunch," Demirors and David Kennedy, CEO of TrustedSec, linked the attack to North Korea's Lazarus Group, which has previously targeted digital assets.
Kennedy pointed out that the hack exhibited similarities to earlier cyberattacks that employed social engineering tactics to breach developer accounts.
"They conducted extensive research and gained considerable knowledge about the exchanges and infrastructure, as well as how these public and private key cryptography components function," Kennedy commented.
The attack focused on Bybit's Safe Wallet infrastructure, transferring funds through a network of 50,000 addresses to conceal transactions.
Demirors stressed that while bitcoin's cold storage security remains uncompromised, private key risks persist in cryptocurrency. Nevertheless, she highlighted increased industry cooperation in response to hacks.
Read More: "Bybit and Safe Custody Disagree Over Responsibility in $1.5B Cryptocurrency Breach"
Demirors observed that such an attack could have severely affected Bybit last year or the year before, but enhanced collaboration among security providers, exchanges, and governments has improved efforts to track and freeze assets.
Both experts concurred that the attack underscores the necessity for stronger security without diminishing Bitcoin's (BTC) investment appeal.
"This is a North Korea problem. It will persist as a North Korea problem," Demirors affirmed. "The Trump administration is insightful about crypto. They view this not as a crypto issue."
Kennedy concurred, stating that although cryptocurrency systems are intended to be secure, human vulnerabilities continue to be the primary threat.
Read More: "Ripple Spotlights XRP with Unveiling of Institutional Strategy for XRP Blockchain"