{"id":21764,"date":"2025-03-05T17:35:25","date_gmt":"2025-03-05T15:35:25","guid":{"rendered":"https:\/\/forklog.com\/en\/bybit-urges-paraswap-to-return-profits-from-lazarus-transactions\/"},"modified":"2025-03-05T17:35:25","modified_gmt":"2025-03-05T15:35:25","slug":"bybit-urges-paraswap-to-return-profits-from-lazarus-transactions","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bybit-urges-paraswap-to-return-profits-from-lazarus-transactions\/","title":{"rendered":"Bybit Urges ParaSwap to Return Profits from Lazarus Transactions"},"content":{"rendered":"<p>Bybit has called on the ParaSwap DAO to return 44.67 wETH (approximately $100,000) earned from transaction fees by the Lazarus Group, which <a href=\"https:\/\/forklog.com\/en\/news\/bybit-exchange-suffers-1-46-billion-loss-in-hack\">stole<\/a> these funds from the platform.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Verification of Proposal Authenticity ? <a href=\"https:\/\/twitter.com\/paraswap?ref_src=twsrc%5Etfw\">@paraswap<\/a><\/p>\n<p>We hear the DAO community\u2019s concerns and want to reassure you \u2014 this proposal is legitimate and comes directly from Bybit.<\/p>\n<p>Check the proposal in detail here: <a href=\"https:\/\/t.co\/JUvPdXBkSZ\">https:\/\/t.co\/JUvPdXBkSZ<\/a><\/p>\n<p>\u2014 Bybit (@Bybit_Official) <a href=\"https:\/\/twitter.com\/Bybit_Official\/status\/1897203207069425795?ref_src=twsrc%5Etfw\">March 5, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The request was <a href=\"https:\/\/gov.paraswap.network\/t\/pip-59-return-of-44-67-weth-to-bybit\/2065\">published<\/a> on the forum on March 4. The proposal to freeze and return the assets to the specified wallet <a href=\"https:\/\/gov.paraswap.network\/t\/pip-59-return-of-44-67-weth-to-bybit\/2065\/6\">sparked debate<\/a> among community members. Some users claimed the publication required verification. On March 5, Bybit confirmed it had initiated the request.<\/p>\n<p>Taproot Wizards co-founder Udi Wertheimer noted that refusing to return the funds could be seen as profiting from a hacking attack, which would harm the platform&#8217;s reputation and attract increased regulatory scrutiny.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bybit asked to return 44.67 ETH from the Paraswap DAO that Bybit hacker paid in SWAP FEES.<\/p>\n<p>This decision has ethical and legal responsibilities against the DAO and sets a precedent for the wider DeFi ecosystem (notably Thorswap).<\/p>\n<p>I&#8217;m a Paraswap DAO delegate but still split on\u2026 <a href=\"https:\/\/t.co\/gz83dk6whR\">pic.twitter.com\/gz83dk6whR<\/a><\/p>\n<p>\u2014 Ignas | DeFi (@DefiIgnas) <a href=\"https:\/\/twitter.com\/DefiIgnas\/status\/1896867587436560414?ref_src=twsrc%5Etfw\">March 4, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>However, he also warned that returning the assets could create a risky precedent for DAOs, undermining the key principle of decentralized protocols: &#8220;Code is law.&#8221;\u00a0<\/p>\n<p>According to Wertheimer, the fees were legitimately earned through smart contracts. If the DAO makes an exception, it could jeopardize the entire DeFi ecosystem. In the future, new demands for fund returns, including contentious ones, could arise, the expert explained.<\/p>\n<p>Some users supported the option of a partial return. They suggested transferring the majority of the funds but retaining 10% as a bounty for the DAO, aligning with Bybit&#8217;s own vulnerability policy. Other participants opposed the initiative, fearing reputational and legal consequences.<\/p>\n<p>From February 24 to March 2, the THORChain protocol <a href=\"https:\/\/forklog.com\/en\/news\/thorchain-swap-volume-surpasses-4-6-billion-following-bybit-hack\">processed<\/a> a record $4.66 billion in swaps. Analysts reported that Bybit hackers used the platform for exchanging and laundering funds.\u00a0<\/p>\n<p>On February 27, THORChain&#8217;s lead developer, known as Pluto, announced he would <a href=\"https:\/\/forklog.com\/en\/news\/thorchain-developer-departs-amid-bybit-asset-laundering-scandal\">leave the project<\/a> following the cancellation of a vote regarding the blocking of transactions by the perpetrators.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bybit has called on the ParaSwap DAO to return 44.67 wETH (approximately $100,000) earned from transaction fees by the Lazarus Group, which stole these funds from the platform. Verification of Proposal Authenticity ? @paraswap We hear the DAO community\u2019s concerns and want to reassure you \u2014 this proposal is legitimate and comes directly from Bybit. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1151,1125,1459],"class_list":["post-21764","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bybit","tag-lazarus","tag-paraswap"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/21764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=21764"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/21764\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/21763"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=21764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=21764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=21764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}