Bybit Hackers Continuing to Launder Stolen Money
On 1 March, the Bybit $1.4 billion exploit hackers continued to launder more stolen money, moving an additional 62,200 Ether (ETH), reports blockchain analysts. The hackers, believed to be the North Korea’s Lazarus Group, have laundered 343,000 ETH—68.7% of stolen money as of now.
FBI and Crypto Industry Initiatives to Prevent Transfers
Despite the interference by the FBI, where 51 Ethereum addresses that were linked to the exploit were flagged, money laundering persists. Blockchain analytics firm Elliptic has discovered over 11,000 other wallets which are likely linked to the hackers.
Cryptocurrency exchanges, bridges, and node operators have been requested to ban transactions related to these addresses, but decentralized protocols which lack Know Your Customer (KYC) checks have made enforcement harder.
Crosschain Protocols Under Scrutiny
Forensic firm Chainalysis chronicled that the stolen ETH has been traded against Bitcoin (BTC), Dai (DAI), and other tokens on crosschain bridges, instant swap services, and decentralized exchanges. THORChain, a crosschain protocol among them, has faced significant criticism for facilitating the transactions.
THORChain developer “Pluto” resigned following a vote by the community to overturn a decision to ban transactions linked to the hackers. The protocol founder, John-Paul Thorbjornsen, stated that the addresses banned by the FBI have not directly interacted with THORChain.
The Largest Crypto Hack in History
The Feb. 21 Bybit hack is the largest crypto heist to date, eclipsing the $650 million Ronin bridge hack in 2022. With just 156,500 ETH remaining to be transferred, analysts believe the laundering process will be completed in days, once again pushing the crypto sector to its limits in fighting illicit financial flows.
