The FBI has called on node operators, exchanges, and the private sector to stop transactions from addresses used to launder funds from the $1.4 billion Bybit hack.
Bybit Hack: What Happened?
According to the FBI, North Korean-linked hackers are responsible for the Bybit hack, dubbed TraderTraitor in their public statement. The TraderTraitor group, also known as the Lazarus Group, APT38, BlueNoroff, and Stardust Chollima, has converted some of the stolen assets to Bitcoin and other virtual assets. It is expected that these assets will be laundered further and converted into fiat currency.
FBI's Involvement and Measures
The FBI has called on Remote Procedure Call node operators, exchanges, blockchain analytics firms, and others to block transactions linked to TraderTraitor. The agency has also shared 51 Ethereum addresses for industry players to avoid. Blockchain analytics firm Elliptic has flagged over 11,000 wallet addresses suspected in connection to the Bybit exploit.
Crypto Community's Response
Crypto forensics firm Chainalysis noted that hackers converted portions of the stolen Ether into Bitcoin, the Dai stablecoin, and other assets through decentralized exchanges, crosschain bridges, and instant swap services without Know Your Customer protocols.
Given the extent of the hack and the speed of the perpetrators’ actions, the FBI continues to coordinate efforts with crypto companies to prevent further theft and recover stolen funds.
