The recent hack of the cryptocurrency exchange Bybit, in which $1.46 billion was stolen, has entered a critical phase. The North Korea-linked Lazarus Group has begun laundering the stolen funds.
How the Stolen Funds Are Being Laundered
According to Elliptic, hackers systematically distributed funds across 50 wallets. Stolen tokens like stETH and cmETH were converted to Ethereum using decentralized exchanges to avoid asset freezes. These funds are now being converted to Bitcoin via anonymous exchanges like eXch.
Bybit Faces $6B in Outflows
As a result of the hack, Bybit is facing significant losses. Bitcoin reserves in Bybit's wallet have decreased from 70,000 BTC to 52,000 BTC. Total withdrawals from Bybit across various assets have exceeded $6 billion.
eXch Accused of Facilitating Money Laundering
Blockchain researchers have linked eXch to the laundering process, despite requests from Bybit to block transactions with stolen funds. Elliptic claims eXch ignored Bybit's calls, while the platform denies the allegations and states that funds processed are insignificant and will be donated to privacy initiatives.
The situation with the Bybit hack is ongoing. It is believed that hackers may next use Bitcoin mixers, but the size of the stolen assets makes this challenging. Experts continue to track the movement of funds, but North Korea's laundering methods present significant obstacles to asset recovery.
