Bybit Loses $1.5B to Lazarus Group

CRYPTO
Bybit Loses $1.5B to Lazarus Group

North Korea’s Lazarus Group was behind the $1.5 billion hack on crypto exchange Bybit, according to blockchain analytics firm Arkham Intelligence and onchain investigator ZachXBT. The attack, the largest crypto theft ever, exploited a vulnerability known as "Blind Signing," where a smart contract transaction is approved without full knowledge of its contents.

Hackers withdrew nearly $1.5 billion from Bybit into a primary wallet before distributing the funds across more than 40 wallets. The stolen assets were converted into ETH and systematically transferred in $27 million increments to multiple addresses.

Arkham Intelligence initially offered a 50,000 ARKM token bounty for identifying the attackers. ZachXBT provided forensic analysis confirming Lazarus Group's involvement.

Bybit CEO Ben Zhou stated that the hackers compromised an ETH cold wallet but assured users that the exchange remains solvent despite the loss. Experts warn that Blind Signing is becoming a favored attack method for sophisticated cybercriminals, including North Korean hackers.

TECH
Palantir CEO Sells $1.88B in Shares

Palantir’s stock soared over 600% in the past year, making CEO Alex Karp a wealthy man. Karp sold $1.88 billion worth of company shares in 2024, with $1.4 billion offloaded around the U.S. presidential election. An additional $325.6 million came from sales in September, and he plans to sell up to 9.98 million more shares in 2025, potentially netting over $1 billion.

These transactions follow a 10b5-1 trading plan, allowing executives to pre-plan stock sales. Palantir co-founder Peter Thiel also sold 48 million shares last year, valued at $1.5 billion.

Karp, a self-described progressive, has distanced himself politically from Thiel, who backed Trump. Despite controversy over Palantir’s work with ICE, Karp defends the company’s role in national security. To date, Palantir has received $2.7 billion in federal contracts, including $1.4 billion from the Department of Defense, cementing its status as a major U.S. defense contractor.

FINANCE
Berkshire’s Cash Pile Hits $325 Billion

Warren Buffett, the legendary investor and Berkshire Hathaway CEO, has been a net seller of stocks for eight consecutive quarters, a trend likely continuing into Q4 2024. With the stock market hitting record highs and valuations soaring, investors eagerly await his annual letter, searching for signs of a potential market correction.

Buffett’s cautious approach is evident in Berkshire’s $325 billion cash reserve, largely invested in U.S. Treasury bills. His preference for undervalued stocks led to reducing holdings in Bank of America and Citi while increasing stakes in Constellation Brands, SiriusXM, and Occidental Petroleum.

The "Buffett Indicator," which measures market valuation relative to GDP, has surpassed levels seen before the dotcom crash. Analysts believe Buffett may be waiting for a downturn, just as he did in the early 2000s. Whether he signals a shift or remains patient, his words will shape market sentiment as investors look to his wisdom for guidance.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.