The recent Bybit hack, where hackers stole nearly $1.5 billion worth of Ethereum and Lido Staked Ether, has sent shockwaves through the crypto world. The attack, which is considered the largest crypto hack ever, has been linked to the notorious Lazarus Group, a North Korean cybercriminal outfit known for its high-profile hacks on major crypto platforms.
According to blockchain research firm Elliptic, the Lazarus Group has been laundering the stolen crypto through the exchange eXch. The group’s money-laundering process typically involves exchanging stolen tokens for a native blockchain asset like Ethereum, as ETH cannot be frozen by a central authority. The stolen funds are then “layered” through multiple wallets, exchanges, cross-chain bridges, and crypto mixers to obscure the transaction trail.
Elliptic’s analysis reveals that the Lazarus Group is currently in the process of emptying wallets that received the stolen assets. A significant portion of the stolen funds, worth $195 million, has already been moved out of these wallets. The funds are being laundered through various services, including decentralized exchanges, cross-chain bridges, and centralized exchanges. Notably, eXch has emerged as a major facilitator of this laundering, with over $75 million in stolen assets from Bybit being exchanged through the platform.
Despite Bybit’s requests to block this activity, eXch has refused to comply. The exchange has denied allegations of laundering funds for Lazarus, claiming that only an “insignificant” portion of the stolen Bybit funds passed through its platform. Bybit has since restored a 1:1 backing on all client assets and announced a full restoration of services following the hack.
As the crypto world grapples with the aftermath of the Bybit hack, it serves as a stark reminder of the ongoing cybersecurity threats faced by the industry. Stay updated on the latest developments by subscribing to email alerts and following key price actions on social media platforms like Twitter, Facebook, and Telegram. Remember to exercise caution and due diligence when engaging in crypto transactions to protect your assets.