Cross-chain bridge Chainflip declared that it will update its protocol to stop Bybit hackers’ cash from moving illegally within it. According to the platform’s official announcement, the majority of the code has been written and has to be tested and put live on the network.
It is anticipated that the updated version will be released in 24 to 72 hours.
The move comes after the Bybit hackers transferred 5,000 ETH using the eXch mixer and then used Chainflip to convert it to Bitcoin on February 22nd. In a public statement after the transfer, Bybit’s CEO urged cross-chain projects to work together to stop additional transactions connected to the hacker.
Chainflip Works Towards Aiding ByBit’s Recovery
In the official announcement, Chainflip said “We will then closely monitor network activity. If we see any suspicious activity that isn’t caught by these new features, we, along with the rest of the Chainflip ecosystem, are committed to ramping up protections as they are needed.”
Chainflip’s ruling emphasizes how decentralized platforms are increasingly expected to keep an eye on and regulate the flow of illegal assets in order to maintain the integrity and transparency of cryptocurrency marketplaces. In the continuous battle against illicit activity in the cryptocurrency field, the initiative represents a crucial step.
Also Read: Bybit Restores Ethereum Reserves After $1.4 Billion Hack, CEO Confirms Full Recovery
What Will The Upgrade Include?
The current broker-level screening tools that are accessible to all broker operators have been upgraded in version 1.7.10. Brokers, a state chain role that interfaces employ to communicate with the network, have the ability to reject incoming Bitcoin deposits at this time if they utilize any screening method (or a combination of them) to identify a high-risk transaction.
Rejected deposits are returned straight to the user-specified refund address. Ethereum and all other ERC20 tokens will now have access to this capability.
Since anyone can establish a broker, this screening could be circumvented by just creating a new broker. Furthermore, not all network brokers presently have access to sophisticated screening techniques that would enable them to identify high-risk flows automatically.
Chainflip’s Strategy To Provide Long-Term Protection
Chainflip has stated that the strategy should provide LPs on the network with strong and long-lasting protection, as these brokers keep an eye on all incoming transactions and collaborate closely with elliptic, chainalysis, the Bybit API, and other investigators.
Chainflip will no longer be helpful to anyone whose wallet has been connected to a significant incident, hack, fraud, or scam. As a result, Chainflip will be able to offer LPs a far more dependable and safe environment in which to invest more money with less risk, hence enhancing service for DeFi customers worldwide.
The majority of the code for this has already been created; it just needs to be tested and put live on the network. Within 24 to 72 hours, the platform anticipate it going live.