Chainflip tests upgrade to block ByBit hack funds
The developers reported that most of the code is ready
Chainflip, the decentralized exchange (DEX) specializing in cross-chain swaps, is preparing a significant upgrade aimed at preventing Bybit hackers from exploiting its platform for money laundering.
This move comes amid heightened concerns over the use of decentralized platforms to channel illicit funds, The Block informs.
Upgrade details and objectives
According to Chainflip developers, the upgrade will include enhanced monitoring and security measures, ensuring that any funds linked to hacking activities are swiftly identified and blocked.
The planned upgrade by Chainflip is set to fortify the platform’s defenses and curb unauthorized fund flows. Chainflip’s team has emphasized that the new measures will not only improve the platform’s security but also ensure continuous monitoring of suspicious transactions.
The developers reported that most of the code is ready. Now we need to test and launch it. This is expected to happen within 24-72 hours.
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This proactive approach aims to close potential loopholes that could be exploited by hackers—specifically those responsible for the recent Bybit breach—by preventing their stolen funds from being laundered through Chainflip’s cross-chain DEX. The upgrade will integrate advanced detection protocols designed to flag irregularities in transaction patterns, thereby stopping illicit funds in their tracks.
Update 1.7.10 allows Chainflip to reject any deposits of ETH and ERC20 tokens in its network, including SwapKit and cross-chain DEX aggregator Rango.
Market implications and future outlook
The Chainflip initiative is seen as a necessary step in bolstering the integrity of decentralized finance (DeFi) platforms. By preemptively addressing the risk of money laundering linked to cyberattacks, Chainflip is not only protecting its users but also reinforcing market trust in cross-chain DEX operations. This upgrade could set a precedent for other platforms facing similar challenges, highlighting the need for robust security measures and continuous monitoring in an evolving threat landscape.
Looking ahead, market participants and regulators will closely observe the impact of these enhanced security protocols. The outcome could influence broader industry standards, prompting other DEXs to adopt similar upgrades to safeguard against illicit fund flows and protect the integrity of decentralized markets.
We previously wrote that the theft of $1.4 billion in ETH from Bybit and the subsequent attempts to launder the funds demonstrated the crypto community’s unity in preventing impunity for cryptocurrency theft. However, there were exceptions.
