The crypto community was shaken by the news of a hack on Bybit, resulting in $1.4 billion being stolen. Allegations of fund laundering were directed at the exchange eXch.
Bybit Hack and Allegations Against eXch
On February 21, 2025, Bybit suffered one of the largest crypto thefts as over $1.4 billion was drained from its Ethereum cold wallet. Investigators, including ZachXBT and Nick Bax, claimed that the North Korean state-sponsored hacking group Lazarus was behind the attack. Blockchain data showed that ETH reserves on eXch surged after the hack, with analysts reporting that over 20,000 ETH moved through the exchange within 24 hours, far exceeding its usual 800 ETH daily volume.
eXch's Response to Allegations
In a February 23 post on Bitcointalk, eXch rejected allegations of money laundering, labeling them as 'FUD.' The exchange admitted that a small portion of the stolen funds entered its system, but insisted it was an isolated case. It has pledged to donate any processing fees to open-source privacy projects.
Consequences and Further Actions
By coordinating efforts, Bybit managed to freeze over $42 million in stolen assets, but faces resistance from eXch, which refuses to block flagged wallet addresses. Bybit CEO Ben Zhou called for unified industry action to prevent hackers from cashing out stolen assets. SlowMist urged crypto platforms to tighten risk controls on assets originating from eXch.
This situation highlights the need for collaborative efforts and stringent measures from cryptocurrency platforms to prevent the laundering of stolen funds and enhance overall industry security.
