Bybit CEO Ben Zhou has provided an update on the recent security breach that occurred on the exchange, revealing that $1.07 billion of the stolen assets can still be tracked. This amounts to approximately 77% of the $1.4 billion that was stolen in the hack.
According to Zhou, hackers were able to successfully launder $280 million, which accounts for around 20% of the 499,000 ETH that was stolen. Investigators have been able to freeze $42 million, representing 3% of the compromised funds. Zhou also mentioned that 11 independent bounty hunters were rewarded a total of $2.1 million for their efforts in helping to freeze the stolen assets, with top contributors including Mantle, Paraswap, and blockchain investigator ZachXBT.
One interesting development in the case is the role that THORChain played in the laundering of the stolen assets. Zhou disclosed that the hackers converted a significant portion of the stolen ETH into Bitcoin through THORChain, a decentralized platform for cross-chain asset swaps. This activity resulted in a substantial increase in THORChain’s transaction volume, reaching over $5.8 billion in the last two weeks following the Bybit breach. Blockchain analyst EmberCN reported that the platform earned approximately $5.5 million in fees from these transactions.
However, blockchain security researcher Taylor Monahan criticized THORChain, arguing that its structure enables criminal activities under the guise of decentralization. She claimed that the platform operates in an isolated ecosystem that benefits insiders and facilitates money laundering.
Zhou emphasized the importance of tracing and freezing the funds before hackers attempt to cash out through centralized exchanges, OTC desks, and P2P networks. He also mentioned that the stolen assets were moved through other platforms, including ExCH and OKX Web3 Proxy. A significant amount of ETH passed through OKX’s Web3 proxy, with some remaining traceable while additional information is needed to track the rest. Additionally, a portion of the stolen assets was funneled through ExCH, a platform that had previously denied facilitating illicit transactions for the Bybit hacker.
In summary, the efforts to track and freeze the stolen assets continue, with collaboration between investigators, bounty hunters, and exchanges playing a crucial role in the process. The case underscores the importance of robust security measures in the cryptocurrency industry to prevent such breaches in the future.