Bybit CEO Reveals $280M of Stolen Funds Untraceable
- Bybit CEO Ben Zhou confirms that $280 million of the $1.4 billion stolen from the exchange is now untraceable.
- Hackers converted $1 billion in ETH to BTC via THORChain and spread it across multiple wallets.
- 11 bounty hunters have assisted in freezing $42 million of the stolen funds so far.
In a shocking development, Bybit CEO Ben Zhou has disclosed that $280 million of the $1.4 billion stolen in the February hack has disappeared into untraceable channels.
North Korean Group Lazarus Behind Security Breach
The security breach, attributed to the North Korean hacking group Lazarus, resulted in the theft of approximately 500,000 Ether (ETH) from Bybit’s reserves. While most of the funds are still visible on the blockchain, Zhou’s announcement highlights the challenges faced by investigators in freezing the assets before the hackers cash out completely.
Hackers Utilize THORChain to Fragment Funds
A significant portion of the stolen Ether, totaling 417,348 ETH valued at around $1 billion, was converted into Bitcoin (BTC) and distributed across 6,954 wallets, each holding an average of 1.71 BTC. The hackers leveraged THORChain to facilitate this conversion, making it difficult for forensic teams to track the funds.
Bybit Enlists Bounty Hunters for Recovery Efforts
Bybit has engaged the help of bounty hunters and security firms to thwart the hackers. 11 parties, including Mantle, Paraswap, and ZachXBT, have assisted in freezing $42 million of the stolen funds. Bybit has paid out $2.178 million in USDT to these contributors as part of its recovery efforts.
Despite these efforts, the hackers continue to launder the stolen funds through various platforms, posing a challenge to asset recovery.
