Bybit hacker launders 100% of stolen $1.4B crypto in 10 days
The crypto community has been shaken by the recent Bybit hack, which resulted in the theft of over $1.4 billion worth of digital assets, making it the most significant breach in the history of cryptocurrency. The exploit occurred on February 21, with the hackers primarily targeting liquid-staked Ether (STETH), Mantle Staked ETH (mETH), and various ERC-20 tokens.
According to blockchain analytics firm Lookonchain, the perpetrator successfully laundered all 500,000 stolen Ether (ETH), valued at approximately $1.04 billion, primarily utilizing the decentralized cross-chain protocol THORChain. In a post shared on March 4 on social media platform X, Lookonchain revealed, “The #Bybit hacker has laundered all the stolen 499,395 $ETH ($1.04B currently), mainly through #THORChain.”
North Korea’s Lazarus Group has been identified as the lead suspect behind the breach by multiple blockchain analytics companies, including Arkham Intelligence. This revelation follows sanctions placed by South Korean authorities on 15 North Korean individuals linked to cryptocurrency heists used to fund the nation’s nuclear weapons program.
While the laundered funds appear to have been effectively obscured, blockchain security professionals remain cautiously optimistic. Deddy Lavid, co-founder and CEO of the cybersecurity firm Cyvers, noted that some of the stolen assets might still be traceable. He emphasized the role of on-chain intelligence, AI-driven recovery models, and collaboration with exchanges and regulatory bodies in tackling these types of crimes. “Rapid response is key; once funds are deeply obfuscated, recovery becomes significantly harder,” he mentioned.
Bybit’s CEO, Ben Zhou, confirmed on March 4 that approximately 77% of the stolen funds are traceable, indicative of the remaining potential for recovery. However, over $280 million has “gone dark,” with only 3% of the funds successfully frozen. Despite these challenges, Bybit promptly honored customer withdrawals and had effectively replaced the stolen assets on February 24, merely three days post-attack.
As the crypto industry grapples with this unprecedented breach, cybersecurity firms are innovating solutions to mitigate future attacks. One promising approach is offchain transaction validation, which has the potential to preemptively prevent up to 99% of crypto hacks and scams. This method involves simulating and validating blockchain transactions in an off-chain environment, providing greater assurance before funds are transferred.
In the wake of this incident, discussions around security measures in the cryptocurrency landscape have intensified, highlighting the need for reinforced protocols and technologies within digital asset exchanges. The fallout from the Bybit hack may not only impact the exchange but could also resonate throughout the broader cryptocurrency market as stakeholders seek to enhance their defenses against cyber threats.
