Hacked Crypto Exchange Bybit Offers $140 Million Bounty to Trace Stolen Funds

Last week, hackers stole a staggering amount of $1.4 billion in Ethereum cryptocurrency from crypto exchange Bybit, believed to be the largest crypto heist in history. The company is now offering a total of $140 million in bounties for anyone who can help trace and freeze the stolen funds.

Bybit's CEO and co-founder Ben Zhou announced the bounty in a post on X on Tuesday. On the official site of the bounty, Bybit explains that for every time someone traces and freezes some of the stolen funds, 5% of that amount goes to the person who found them and 5% goes to the “entity” that froze said funds.

At the time of writing, thanks to five bounty hunters, Bybit has already awarded $4.23 million in bounties, according to the site, whose logo is a knife appearing to be stabbing through the head of North Korean leader Kim Jong-un.

The Hunt for the Hackers

Bybit's CEO and co-founder Ben Zhou stated that his company will not stop until "Lazarus or bad actors in the industry are eliminated." Lazarus Group, the name assigned to a broad group of North Korean-backed hackers focused largely on cryptocurrency thefts, is believed to be behind the massive Bybit heist.

Multiple security researchers and crypto security and monitoring firms believe that the hackers work for the North Korean government, which has become very effective at targeting crypto exchanges and web3 companies, stealing $650 million in crypto in 2024 alone, according to the governments of the United States, Japan, and South Korea.

The Forensic Investigation

Bybit's Zhou published the preliminary results of the forensic investigation into the hack, led by two companies, Sygnia Labs and Verichains. Sygnia concluded that the "root cause" of the attack was malicious code coming from the infrastructure of SafeWallet, a crypto wallet platform.

Verichains said a benign JavaScript file was replaced with a malicious version "specifically targeting Ethereum Multisig Cold Wallet of Bybit." The two investigating security companies concluded that hackers breached a developer's device at SafeWallet, as the company itself confirmed.

The Bounty Hunters

The bounties are being offered to anyone who can help trace and freeze some of the stolen funds. Those who succeed will receive 5% of the amount traced and frozen, while the entity that freezes said funds will also receive 5%. The bounties have already attracted five bounty hunters, who have managed to award $4.23 million in bounties.

The search for the hackers is ongoing, but with the help of these bounty hunters, Bybit may finally be able to recover some of the stolen funds and bring the perpetrators to justice.