Cardano’s Hoskinson Reacts to Bybit Crypto Hack

Charles Hoskinson, the founder of Cardano and co-founder of Ethereum, has recently criticized Ethereum following the significant security breach experienced by the cryptocurrency exchange Bybit.

The hack resulted in the loss of over $1.4 billion in crypto assets, including 401,347 Ether and various staked Ether tokens.

In a response to Arthur Hayes’ suggestion of a potential Ethereum rollback to address the breach, Hoskinson wrote “Ethereum Classic.”

He has previously described Ethereum as “a dumpster fire” and compared its potential decline to that of early internet platforms like MySpace and Netscape, suggesting that Ethereum’s current trajectory could lead to obsolescence.

Hoskinson has also proposed that Ethereum might eventually migrate to Cardano, highlighting Cardano’s potential to offer a more efficient and scalable platform with higher liquidity and a broader user base.

This perspective underscores his belief in Cardano’s capacity to address issues he perceives within Ethereum’s framework.

Bybit Lazarus hack

On Friday, Bybit has suffered a massive security breach, leading to the loss of approximately $1.4 billion worth of Ethereum (ETH) and other tokens.

Following the exploit, around $200 million worth of stETH was converted into ETH on the open market, intensifying concerns about the scale of the attack and its potential impact on the broader crypto ecosystem.

Blockchain intelligence firm Arkham Intelligence identified the North Korean hacker group Lazarus as the perpetrators behind the attack. Crypto analyst ZackXBT presented detailed evidence linking Lazarus to the incident, sharing his findings at 7:09 p.m. UTC on Friday.

His analysis included test transactions, associated wallets, forensic graphs and timing patterns that outlined how the breach was carried out. Arkham Intelligence confirmed that this evidence was forwarded to Bybit’s security team to aid in their investigation.

In response to the crisis, Bybit CEO Ben Zhou assured users that withdrawal services had fully resumed.

Highlighting the unprecedented level of withdrawal activity following the attack, Zhou revealed that Bybit had processed over 350,000 withdrawal requests within hours.

Despite the severity of the breach, Zhou emphasized that all Bybit functions and services remained operational. He praised his team’s swift response, dedication and around-the-clock efforts to address client concerns and ensure the platform’s stability.