One of the biggest hacks in cryptocurrency history occurred on the Bybit platform, resulting in the theft of over $1.4 billion. Shortly after the incident, hackers managed to launder a significant portion of the funds using the THORChain protocol.
50% Stolen Assets Laundered
According to a report from Lookonchain on February 28, 2025, hackers used the THORChain protocol to move and launder the stolen funds. Data disclosed by Lookonchain revealed that by February 28, the Lazarus hacker group had successfully laundered approximately 54% of the stolen funds while still holding 229,395 ETH.
THORChain's Role in Data Handling
THORChain, which had previously assisted Bybit in blacklisting suspicious wallets, became a tool for moving the stolen funds. According to DefiLlama, this led to a tenfold increase in swap volume through THORChain, from $80 million to $800 million daily.
Community Reaction and Consequences
The Bybit hack sparked controversy in the crypto community, particularly regarding the privacy features provided by THORChain. An internal vote to block transactions associated with the Bybit hack was held but ultimately canceled, as developer Oleg Petrov stated. This resulted in the resignation of a core THORChain developer known as Pluto. Additionally, a validator named TCB threatened to resign if the flow of illicit funds was not stopped.
The Bybit hack highlights the vulnerabilities that still exist in the crypto world. Despite the transparency of blockchain technologies, incidents like this underscore the need for enhanced security and collaboration between regulators and the community.
