Bybit's $1.4B Hack Leaves $380M in the Dark
The $1.4 billion cyberattack on cryptocurrency exchange Bybit has resulted in a staggering $380 million worth of stolen funds going untraceable, according to CEO Ben Zhou.
Bybit's Chief Executive Officer revealed that an astonishing 27.95% of the hacked funds have vanished into thin air, making it nearly impossible to track their movement or recovery. This ominous development has left investors and experts alike grappling with the enormity of the situation.
The Lazarus Group's Dastardly Plan
According to Zhou, the malicious entity behind the hack, identified as the North Korean Lazarus Group, employed a sophisticated plan involving mixers and bridges to launder the stolen funds.
The illicit funds were first funneled into mixers, such as Wasabi, which washed off a certain amount of Bitcoin. These cleaned funds were then transferred through bridges to peer-to-peer (P2P) and over-the-counter (OTC) platforms, further complicating efforts to recover the stolen assets.
The Maze of Cryptocurrency Exchanges
Forensics have revealed that a significant portion of the hacked funds was moved from Ethereum to Bitcoin via Thorchain. Notably, 67.25% of these funds, amounting to around $960 million, has been converted into 10,003 Bitcoins and distributed across 35,772 wallets with an average of 0.28 BTC per wallet.
Additionally, 5,991 ETH (approximately $16.77 million) remains on the Ethereum blockchain, stashed across 12,490 wallets. The Lazarus Group's cunning tactics have left even experts scrambling to untangle the complex web of cryptocurrency exchanges and transactions.
The Call for Bounty Hunters
Bybit CEO Zhou emphasized the need for more bounty hunters who can decipher mixers, stating that "we need a lot of help there down the road." With over 5,400 valid bounty reports submitted through the Lazarus Bounty initiative in just two months, it's clear that the cryptocurrency community is determined to bring those responsible for this heinous crime to justice.
A $380M Mystery Remains Unsolved
The Bybit hack serves as a stark reminder of the risks and uncertainties inherent in the cryptocurrency space. As the market continues to evolve, it's essential for exchanges, regulators, and investors to remain vigilant and collaborative in their efforts to prevent such incidents.
Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a master's degree in Finance and is a Chartered Market Technician (CMT) member. He previously worked at FXStreet, writing research on currency markets and as a fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses.