In February 2021, Bybit experienced a massive hack resulting in the theft of crypto assets worth $1.4 billion.
Details of Bybit Hack
On February 21, 2021, Bybit was the victim of a massive hack, leading to approximately $1.46 billion being stolen in crypto assets. This event surpasses previous crypto heists, such as the Poly Network hack in 2021 and the Ronin Network hack in 2022.
Laundering Methods of Stolen Funds
According to Elliptic, the Lazarus Group, suspected of being behind the hack, is attempting to obfuscate transaction trails using mixers and other techniques. The stolen assets were quickly distributed across 50 different wallets and continue to move through decentralized exchanges and crosschain bridges. However, due to the volume of stolen assets, this strategy may be challenging.
Bybit's Response and Consequences
Despite the hack, Bybit has stated that it has fully replaced the $1.4 billion worth of Ether that was stolen. A new audited proof-of-reserve report is also expected to be published. Meanwhile, the exchange eXch, accused of facilitating the laundering of funds, denies its involvement in aiding North Korean hackers.
The largest crypto heist in history raises ongoing concerns about the security of decentralized assets and highlights the challenges in combating hacking groups like Lazarus.
