Bybit CEO Says 77% of Stolen Funds From Record $1.4B Hack Still Traceable
A devastating cyberattack on cryptocurrency exchange Bybit has left the community reeling, with an estimated $1.4 billion in customer assets stolen. But, in a glimmer of hope for authorities and investors alike, Bybit CEO Ben Zhou has revealed that 77% of the stolen funds remain traceable.
The hackers, believed to be affiliated with the North Korean group Lazarus, targeted SafeWallet, a third-party wallet platform used by Bybit. They exploited a developer's device, allowing them to manipulate a routine wallet transfer and siphon off nearly $1.5 billion in Ethereum (ETH) from the exchange.
According to Zhou, some 417,348 ETH, valued at approximately $1 billion, remain traceable on the blockchain after being moved using privacy-focused THORChain. This represents about 77% of the total funds stolen during the hack.
However, a significant portion of the stolen funds, roughly 20%, or around 79,655 ETH, worth $200 million, have "gone dark" through ExCH, a private blockchain platform. Another 40,233 ETH, worth $100 million, had passed through OKX's web3 proxy, while 23,553 ETH, worth $65 million, remain untraceable.
The hackers converted 83% of the stolen ETH — 361,255 ETH; or $900 million — into Bitcoin (BTC), distributing it across 6,954 wallets. This transaction was facilitated using THORChain, which has processed a record-breaking $4.66 billion in swaps in the week ending March 2.
THORChain's illicit flows have generated over $5.5 million in fees, making it one of the most profitable platforms for hackers during this period.
The Road to Recovery
"This and the coming week is critical for fund freezing as the funds will start to clear at exchanges, OTC [over-the-counter] and P2P [peer-to-peer]," Zhou said in an update on X early Tuesday. He emphasized that the hackers' efforts to launder the money and convert it into cash are ongoing.
The recovery process is underway, with Bybit fully returning to a 1:1 backing of client assets days after the attack. The exchange has assured investors that all necessary measures are being taken to prevent such incidents in the future.
A Glimmer of Hope
Despite the devastating nature of this cyberattack, Zhou's statement provides some relief for those affected. The fact that 77% of the stolen funds remain traceable offers a glimmer of hope that authorities and investors can take action to recover the lost assets.
The incident highlights the ongoing threat posed by hackers and the need for robust security measures in the cryptocurrency industry. Bybit's CEO has acknowledged the severity of the situation, emphasizing the importance of collaboration with law enforcement agencies and regulatory bodies to bring those responsible to justice.