How Hackers are Laundering $1.5 Billion in Ethereum through Bitcoin Mixers
Bybit CEO Ben Zhou recently shed light on the tactics hackers are using to launder the $1.5 billion in Ethereum stolen from the exchange. Here is a breakdown of how they are doing it:
Bitcoin Mixers Used for Laundering
- 193 BTC, approximately $16 million, were funneled through Wasabi Wallet.
- Other mixers being used include CryptoMixer, Railgun, and Tornado Cash.
Challenges Faced
The decoding of mixer transactions is a significant challenge for Bybit. They are seeking assistance in this area.
Traceability of Stolen Funds
While hackers are attempting to launder the stolen assets, a significant portion of the funds remain traceable:
- 88.87% of the stolen 500,000 ETH can still be tracked.
- 7.59% has been rendered untraceable.
- 3.54% has been frozen.
Conversion and Distribution
440,091 ETH, valued at approximately $1.23 billion, has been converted into 12,836 BTC and distributed across 9,117 wallets.
Call for Assistance
Bybit has received 5,012 bounty reports related to the breach, but only 63 provided actionable intelligence. More bounty hunters are encouraged to help track assets laundered through crypto mixers.
Impact on Bybit
Following the attack, Bybit’s market share initially dropped but has since started to rebound:
- Market share dropped from nearly 20% on Feb. 21 to around 5% by March 2.
- As of March 19, market share has climbed to 10% according to Kaiko data.
