Following the recent hack of the cryptocurrency exchange Bybit, approximately 500,000 ETH was stolen by North Korea’s Lazarus Group. CEO Ben Zhou reports a significant portion of these funds has become untraceable.
Untraceable Funds and Money Laundering Tactics
According to Ben Zhou, 27.59% of the stolen funds have gone dark due to methods including crypto mixers and decentralized services. Of the remaining 68.57%, only 3.84% have been frozen.
Impact on Cryptocurrency Platforms
Zhou noted that the primary tool for laundering the stolen funds was the Wasabi Mixer. Additionally, services like CryptoMixer, Tornado Cash, and Railgun were used, as well as decentralized exchange platforms. 432,748 ETH, equivalent to 84.45% of the stolen assets, was converted into Bitcoin via Thorchain, of which 342,975 ETH (approximately $960 million) was distributed across nearly 36,000 wallets.
Situation with eXch and Consequences
The platform eXch has been implicated in the laundering scheme and announced its plans to cease operations on May 1, following accusations of laundering $35 million linked to the Bybit hack. The platform denied any wrongdoing, stating that its shutdown was due to international pressure and an active operation targeting it.
The need for more effective tracking and cashing out of stolen assets is evident, given the use of modern laundering techniques within the crypto industry.
