• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

FBI and TraderTraitor: Investigating the Biggest Crypto Heist at Bybit

user avatar

by Giorgi Kostiuk

a year ago


The FBI has issued a statement accusing the North Korean group TraderTraitor of the Bybit crypto hack. This incident has become the largest crypto theft in history, and the agency is now urging companies to block suspicious transactions.

Sophisticated Processes Used

The Bybit hack, which took place this month, was carried out using sophisticated technologies similar to those used by another North Korean hacker group, the Lazarus Group. According to the FBI, the group used modified cryptocurrency trading applications containing malware to steal cryptocurrency. Hackers have already converted part of the stolen assets into bitcoin and other virtual currencies, distributing them across thousands of addresses on multiple blockchains.

TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to Bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains […] it is expected these assets will be further laundered and eventually converted to fiat currency.

Biggest Crypto Hack in History

The Bybit crypto hack became the biggest in history, surpassing the Ronin Network ($625M), Poly Network ($611M), and BNB Bridge ($566M) attacks. The hackers masked the signing interface and compromised Bybit's ETH cold wallet, allowing them to redirect funds to an unknown address. The company stated that the incident occurred when their ETH cold wallet architecture was manipulated through a sophisticated attack.

Bybit detected unauthorized activity involving one of our ETH cold wallets. The incident occurred when our ETH multisig cold wallet executed a transfer to our warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing interface, displaying the correct address while altering the underlying smart contract logic […]. As a result, the attacker was able to gain control of the affected ETH cold wallet and transfer its holdings to an unidentified address.

Responsibility of Crypto Businesses

Bybit's security investigated the breach with blockchain forensic experts and other partners. The company managed to allay concerns by assuring its users that their other cold wallets are secure and funds are safely protected. As a result of the attack, the FBI is turning its attention to crypto businesses, urging them to carefully monitor transactions and block suspect wallets. Otherwise, they could be deemed unwitting accomplices in global money laundering operations.

The FBI and players in the crypto industry believe the TraderTraitor and Lazarus groups are state-sponsored groups responsible for major crypto heists in history. With the FBI now working with platforms like DeFi and exchanges, it remains to be seen if such measures can prevent similar attacks in the future.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Precision Livestock Technologies Yield 150% ROI in 2026

chest

The livestock sector in 2026 is experiencing a historic economic cycle, with precision livestock technologies driving returns of 120-150%.

user avatarKaterina Papadopoulou

Ripple Prime Triples Revenue Run Rate Amid Institutional Growth

chest

Ripple Prime has seen significant growth, tripling its revenue run rate due to increased participation from large financial institutions.

user avatarKofi Adjeman

Goliath Ventures Accused of Defrauding Investors

chest

Goliath Ventures allegedly defrauded investors by promising returns from crypto liquidity pools while using the funds for personal expenses.

user avatarJesper Sørensen

Founder Christopher Delgado Arrested for Fraud and Money Laundering

chest

Christopher Delgado, founder and CEO of Goliath Ventures, was arrested on February 24, 2023, on charges of wire fraud and money laundering related to the Ponzi scheme.

user avatarNguyen Van Long

Goliath Ventures Files for Chapter 11 Bankruptcy Amid Ponzi Scheme Allegations

chest

Goliath Ventures, a Florida-based crypto firm, has filed for Chapter 11 bankruptcy in connection with a $328 million Ponzi scheme.

user avatarSatoshi Nakamura

Ethereum's Fee Revenue Declines as Layer 2 Solutions Gain Traction

chest

Ethereum's transaction fee revenue has dropped significantly, generating approximately $10 million in the past 30 days, ranking third behind Tron and Solana.

user avatarRajesh Kumar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.