- Chainflip announced that the 1.7.10 upgrade will be ready for testing and deployment within 24–72 hours.
- The cross-chain AMM says the update will block Bybit hackers and other malicious actors from using the platform to launder stolen funds.
Cross-chain automated market maker Chainflip has announced an imminent upgrade. Once deployed, the platform will prevent the Bybit hackers from using its decentralized exchange protocol.
The move follows the recent $1.4 billion hack at Bybit, an incident that resulted in the Lazarus Group—allegedly backed by North Korea—draining more than 400,000 ETH from the exchange’s cold wallet.
“After discussions among the team, the community, liquidity providers on the network, all major interfaces using Chainflip, and a majority of validator providers, we are moving forward with a plan to enable interfaces to robustly block unauthorized flows in the Chainflip protocol,” the Chainflip team said in a post on X.
https://t.co/Z6nx0146qN
— CHAINFLIP LABS (@Chainflip) February 24, 2025
According to Chainflip, there was broad consensus across its community in favor of the upgrade. The community views unauthorized flows as a threat that “puts the protocol at risk by exposing LP pools to excessive danger.”
The decision to deploy the 1.7.10 upgrade therefore reflects a collective effort to protect ordinary users’ interests.
On February 22 the protocol placed its primary interface swap platform into maintenance mode to prevent the Bybit hackers from swapping stolen ETH for USDC.
Enhanced broker screening feature
Chainflip says it has been working closely with ecosystem partners and other providers to prevent those funds and other illicit flows from moving through the protocol.
With the upgrade, the protocol expands a broker-level screening capability so that Bitcoin (BTC) deposits can be rejected if they are assessed as high risk for Ethereum (ETH) and any ERC-20 tokens.
“Going forward, Chainflip will not be usable by any wallet that can be linked to a major incident, hack, scam, or fraud. This will allow Chainflip to provide a much more reliable and secure environment for LP pools to commit more capital with lower risk, thereby improving service to DeFi users everywhere,” the platform added.
Chainflip developers have already written most of the code, and testing and deployment could go live within 24 to 72 hours.