Bybit Detects Most of the Stolen Cryptocurrency, Advocates for Decoding Initiatives

Bybit has detected and traced approximately 88.87% of the $1.5 billion in cryptocurrency stolen during a February 2025 breach, according to CEO Ben Zhou. The hackers, identified as North Korea’s Lazarus Group, transferred the stolen Ethereum to Bitcoin via decentralized exchanges before distributing funds across 9,117 wallets. Around 193 BTC has already been routed through mixers like Wasabi and Tornado Cash to obscure transactions, creating significant challenges for recovery efforts.

Bybit launched a 5% bounty program for actionable leads, receiving over 5,000 submissions, though only 63 provided verifiable insights. Zhou emphasized the need for expert assistance in decoding mixer transactions, describing it as the primary obstacle. Despite losing nearly 7.6% of funds to untraceable laundering, the exchange successfully froze 3.54% of assets through collaboration with cybersecurity teams and blockchain analysts.

Funds initially stolen from an Ethereum cold wallet were converted into Bitcoin and spread across wallets averaging 1.41 BTC each to complicate tracking. Though Bybit’s market share briefly dropped post-attack, the platform has since regained half its original user base. Zhou reaffirmed the exchange’s solvency, noting all client assets remain fully backed, and pledged to overhaul security protocols.

The incident highlights growing concerns over crypto mixers enabling large-scale cybercrime. With Lazarus Group-linked hacks totaling billions globally, Bybit’s recovery campaign sets a precedent for collaborative countermeasures against decentralized laundering techniques.

Sources:
https://www.ainvest.com/news/bybit-vows-recover-1-4b-stolen-crypto-enhance-security-2502-94/
https://www.thestreet.com/crypto/investing/bybit-tracks-1b-in-stolen-crypto-through-mixers

Bybit CEO describes how hackers launder stolen Ethereum via Bitcoin mixers

https://coinstats.app/news/43e3f3d0417c209767775801c20158c3c857dba210058f51105b8e1e38605b67_Urgent-Crypto-Bounty-Bybit-Exposes-Lazarus-Groups-15B-Theft–Offers-Reward/
https://www.fintechweekly.com/magazine/articles/bybit-ceo-ben-zhou-says-most-funds-are-still-traceable
https://www.ainvest.com/news/bybit-tracks-88-87-stolen-funds-hacker-mixer-2503/
https://www.ccn.com/news/crypto/bybits-stolen-funds-move-crypto-mixers-dex-crackdown/

$1.5bn stolen from Bybit in ‘largest ever digital heist’

https://thehackernews.com/2025/02/bybit-confirms-record-breaking-146.html