Bybit reported that 89% of the $1.4 billion in cryptocurrency stolen during a historic February hack remains traceable, with blockchain investigators continuing efforts to reclaim the funds. CEO Ben Zhou confirmed that 440,091 ETH—approximately $1.23 billion—was converted into 12,836 Bitcoin and distributed across 9,117 wallets, averaging 1.41 BTC per address. The hackers, linked to North Korea’s Lazarus Group, utilized crypto mixers like Wasabi, CryptoMixer, Railgun, and Tornado Cash to obscure transactions following the theft.
Despite initial laundering through decentralized exchanges like THORChain within ten days of the breach, forensic analysis shows only 7.59% of assets have gone untraceable, while 3.54% were frozen. Bybit has paid $2.2 million to 12 bounty hunters for actionable intelligence under its 10% recovery reward program, which promises up to $140 million for successful asset freezing. The exchange received 5,012 reports in the past month, but only 63 proved valid, prompting Zhou to appeal for more experts skilled in decoding mixer transactions.
Investigators face challenges as hackers now funnel Bitcoin through peer-to-peer networks and mixers. Recent laundering attempts include 193 BTC ($16 million) processed through Wasabi Mixer before redistribution. Zhou emphasized that tracing funds through these privacy tools remains the “No. 1 challenge,” urging collaboration from ethical hackers and blockchain analysts.
While Bybit’s market share initially dropped from 20% to 5% post-hack, it has since recovered to 10%, reflecting stabilized user confidence. The exchange assured customers that all lost funds would be reimbursed through company reserves or partner loans if unrecovered. The Lazarus Group’s pivot to mixer-based laundering marks a strategic shift from previous methods, complicating recovery efforts but leaving a significant portion of stolen assets still trackable.
Sources:
https://www.tradingview.com/news/cointelegraph:3251aab34094b:0-bybit-89-of-stolen-1-4b-crypto-still-traceable-post-hack/
https://www.ccn.com/news/crypto/bybits-stolen-funds-move-crypto-mixers-dex-crackdown/
https://crypto.news/bybit-launches-140m-bounty-to-track-down-crypto-heist/
https://www.hindustantimes.com/business/worlds-largest-crypto-theft-reported-at-bybit-13-000-crore-ethereum-stolen-101740222170993.html
