Bybit CEO: 20% of $1.4B Stolen Funds 'Gone Dark'

Last week, Ben Zhou, the CEO of Bybit, provided an update on the movement of the stolen funds from the cryptocurrency exchange. In a press conference on March 4, Zhou confirmed that a significant portion of the $1.4 billion hacked funds has been laundered and is no longer traceable.

The hackers, who were identified as North Korean nationals, stole approximately $1.4 billion worth of cryptocurrencies, including Ethereum (ETH) and Bitcoin (BTC), from Bybit in February. The stolen funds were then laundered through various cryptocurrency platforms and wallets, making it challenging for investigators to track the movement of the money.

According to Zhou, 20% of the stolen funds, amounting to $280 million, has been "gone dark." This means that the funds have been successfully mixed, laundered, or sent to platforms that obscure transactions. The remaining 80% of the stolen funds, worth around $1.07 billion, still remain trackable.

Investigations are ongoing, and investigators have managed to freeze approximately $42 million, equivalent to 3%, of the stolen funds. However, the fragmentation of the stolen funds across multiple cryptocurrency wallets makes it more difficult for investigators to track and recover the money.

The hackers converted about $1 billion of the stolen funds into Bitcoin (BTC) and spread them across 6,954 cryptocurrency wallets with an average holding of 1.71 BTC per wallet. This has made further tracking and recovery even more challenging.

Bybit CEO Zhou warned that the next one to two weeks will be critical for freezing additional funds before the attackers attempt to cash out through crypto exchanges, over-the-counter (OTC) platforms, and peer-to-peer (P2P) transactions. He also emphasized that the hackers intend to keep the stolen funds.

The Bybit hackers primarily used the decentralized exchange THORChain to cash out ETH and BTC. Other platforms like ExCH and OKX Web3 Proxy were also used to move some of the funds. Zhou revealed that $65 million worth of ETH can be recovered, but will require support from the OKX Wallet team.

Additionally, 11 bounty hunters have been rewarded a total of $2.1 million for their efforts in freezing stolen funds. Blockchain analytics firm Elliptic identified over 11,000 wallets linked to the Bybit hackers on February 25. Bybit also engaged Web3 security firm ZeroShadow for blockchain forensics on February 25.

As investigators continue to work towards recovering the stolen funds, it is essential to note that the recovery process will require significant support and resources from various stakeholders, including law enforcement agencies, cryptocurrency exchanges, and security firms.

Recovery Efforts

The recovery efforts are ongoing, with investigators working closely with Bybit, Elliptic, ZeroShadow, and other stakeholders to freeze the stolen funds. The next few weeks will be crucial in determining the success of these efforts.

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Frozen Assets

The hackers have been unable to cash out through crypto exchanges, over-the-counter (OTC) platforms, and peer-to-peer (P2P) transactions. However, the hackers' primary goal remains to keep the stolen funds.

Bybit CEO Zhou warned that the next one to two weeks will be critical for freezing additional funds before the attackers attempt to cash out through crypto exchanges, over-the-counter (OTC) platforms, and peer-to-peer (P2P) transactions. He also emphasized that the hackers intend to keep the stolen funds.

Recovery Progress

11 bounty hunters have been rewarded a total of $2.1 million for their efforts in freezing stolen funds. Blockchain analytics firm Elliptic identified over 11,000 wallets linked to the Bybit hackers on February 25. Bybit also engaged Web3 security firm ZeroShadow for blockchain forensics on February 25.

The recovery efforts are ongoing, with investigators working closely with Bybit, Elliptic, ZeroShadow, and other stakeholders to freeze the stolen funds. The next few weeks will be crucial in determining the success of these efforts.