Cryptocurrency exchange Bybit is intensifying efforts to track and recover nearly $1.5 billion stolen in a February 21 hack, collaborating with blockchain analytics firms to trace the movement of stolen Ethereum. The breach, attributed to North Korea’s Lazarus Group by blockchain security firm Elliptic, targeted one of Bybit’s offline Ethereum wallets through a manipulated transaction interface. Funds were swiftly funneled into 50 wallets, converted to Bitcoin via decentralized exchanges, and laundered through services like eXch and mixers such as Cryptomixer.
Bybit CEO Ben Zhou confirmed the exchange secured bridge loans to cover 80% of losses while pursuing legal action against the hackers. Elliptic disclosed that the Lazarus Group exchanged stolen tokens for Ether to evade freezes, then layered transactions across blockchains and wallets. Despite eXch refusing cooperation, over $10 million in stolen assets were intercepted through partner platforms alerted by Elliptic’s tagging system.
The heist surpasses all previous crypto thefts, including the $611 million Poly Network hack in 2021, and exceeds Saddam Hussein’s 2003 $1 billion Central Bank of Iraq theft. Analysts linked the attack chain to Lazarus’ earlier hacks, including January’s $80 million Phemex breach. Mandiant highlighted rising crypto heists due to lax Web3 security practices, urging exchanges to adopt stricter transaction screening.
Bybit assured users all unaffected wallets remain secure, with normal operations continuing. The FBI corroborated Elliptic’s attribution to North Korea, emphasizing the regime’s reliance on cybertheft to fund its weapons program. Over $6 billion in cryptoassets have been stolen by North Korean actors since 2017, with 2024 totals reaching $1.34 billion. Security experts warn that enhanced decoding of blockchain trails and coordinated industry action are critical to countering state-sponsored threats.
Sources:
https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/bybit-hit-cryptos-worst-hack-almost-us1-5-billion-stolen
Crypto exchange Bybit says it was hacked and lost around $1.4B
https://www.nbcphiladelphia.com/news/business/money-report/hackers-steal-1-5-billion-from-exchange-bybit-in-biggest-ever-crypto-heist/4115876/
https://theedgemalaysia.com/node/745450
https://thehackernews.com/2025/02/bybit-confirms-record-breaking-146.html
https://www.elliptic.co/blog/bybit-hack-largest-in-history
https://therecord.media/hackers-drained-bybit-crypto-exchange-hack
