Bybit Secures MiCA License Amid Ongoing $644M Theft from $1.4B Hack
Bybit, a cryptocurrency exchange, has obtained regulatory approval from Austria’s Financial Market Authority (FMA) under the European Union’s Markets in Crypto-Assets (MiCA) framework, as stated in a recent announcement.
This approval grants the exchange the ability to provide digital asset services in all 30 countries within the European Economic Area (EEA).
Bybit aims to make Austria the central hub for its operations in Europe, planning to open a permanent headquarters in Vienna and hire more than 100 local employees.
The firm emphasizes that the MiCA registration represents a crucial advancement in adhering to Europe’s rigorous standards regarding consumer safety, transparency, and measures against money laundering.
Mazurka Zeng, leading Bybit’s European division, noted that the company will also embark on educational initiatives via its Blockchain for Good Alliance. This program is designed to foster blockchain research and collaboration with academic institutions.
With this milestone, Bybit joins a select group of cryptocurrency firms that have registered under MiCA, alongside other platforms and traditional financial institutions.
In addition, Ben Zhou, the CEO of Bybit, mentioned that the company is actively seeking licenses in various regions. He stated:
“We are working closely with regulators and pursuing licenses worldwide to provide our users with access to our innovative platform that meets the highest regulatory and compliance standards.”
Bybit’s security incident
Although the license enhances Bybit’s standing in Europe, the exchange is still dealing with the repercussions of a significant security breach in February that led to losses totaling $1.4 billion.
A tracking portal set up by the exchange indicated that approximately $644 million, representing almost 46% of the lost assets, remains unaccounted for.
Further investigations showed that the attackers employed sophisticated obfuscation techniques, using tools like Wasabi Wallet, Tornado Cash, Railgun, and CryptoMixer to conceal their activities.
The majority of the laundered money, around $247 million, was funneled through Wasabi Wallet, while $94 million was moved via CryptoMixer.
However, Bybit has reported that $693 million of the stolen funds can still be traced, and $62.9 million has already been successfully frozen.
To address the breach, Bybit has distributed $2.3 million in bounties to 13 individuals and groups, including notable contributors such as ZachXBT, BitJungle, and the Mantle protocol.
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