The crypto exchange Bybit has faced the largest crypto theft in history, totaling $1.46 billion. Hackers, potentially linked to the Lazarus Group, are employing various methods to conceal the origins of the stolen funds.
Massive Crypto Theft at Bybit
Elliptic has reported that the $1.46 billion stolen from the crypto exchange Bybit is already being laundered. The attack, attributed to North Korea's Lazarus Group, follows familiar patterns where stolen tokens are first converted into blockchain native assets like Ethereum (ETH) before a complex layering and mixing process begins.
Methods of Laundering Funds
Since the hack occurred on February 21, hackers have rapidly dispersed the funds across multiple wallets. Within two hours of the theft, approximately 500,000 ETH was distributed to 50 different wallets, each containing about 10,000 ETH. These wallets are being systematically drained, with at least 10% of the stolen assets already moved. Elliptic warns that the next phase may involve using crypto mixing services like Tornado Cash, which obscure transaction histories by blending illicit funds with legitimate ones. However, the sheer volume of assets involved could make this process challenging.
Consequences and Exchange's Response
Hackers use techniques such as decentralized exchanges, crosschain bridges, and multiple wallet transfers to obscure the origin of stolen funds. A crypto exchange named eXch has been criticized for allegedly enabling money laundering by allowing anonymous transactions and converting tens of millions in stolen assets. Bybit confirmed that its withdrawal system has been fully restored after the incident, assuring all pending withdrawals were processed and the platform operates normally.
The largest $1.46 billion theft at Bybit has drawn the attention of investigators and authorities. The methods used to hide the origins of the stolen funds present new challenges in combating money laundering in cryptocurrencies.
