ByBit hackers successfully laundered 499,000 ETH stolen from the Bybit cryptocurrency exchange using mixing techniques and decentralized platforms without KYC. THORChain was the primary channel for laundering.
Confirmation of North Korean Involvement
The Federal Bureau of Investigation (FBI) has linked the ByBit hack to North Korea, stating that TraderTraitor cyber actors were behind the heist. Portions of the stolen ETH were converted to Bitcoin and other cryptocurrencies and dispersed across thousands of addresses.
How the Hack Happened
The hack occurred during a routine transfer of Ethereum from an offline wallet to a ‘warm’ wallet. Hackers exploited security vulnerabilities to gain access to the funds, transferring them to an unknown address. ByBit CEO Ben Zhou assured that all client assets are fully backed.
Efforts to Recover the Stolen Funds
ByBit is actively seeking to recover the stolen funds, offering a 10% bounty on any recovered funds. The FBI and blockchain analytics firms have identified over 11,000 addresses linked to the hack.
This incident raises concerns about North Korean cyber operations targeting the crypto sector. ByBit and international agencies are working to recover the stolen assets and prevent further fraudulent activities.
