Centralized crypto exchange Bybit was hacked for over $1.4 billion, marking the largest hack in cryptocurrency history.
Timeline of the Bybit Hack
On February 21, Bybit suffered a cyberattack where crypto assets worth over $1.4 billion were stolen. The hacker managed to conceal over 50% of the stolen funds, amounting to $605 million in ETH, using the THORChain crypto platform.
Laundering via THORChain
The exploiters used the cross-chain asset swap protocol THORChain to launder the stolen funds. This resulted in a significant increase in transaction volume on the platform. Blockchain analytics firms, including Arkham Intelligence, have identified North Korea’s Lazarus Group as the entity behind the exploit.
Impacts and Community Feedback
The crypto community has criticized THORChain for its privacy-preserving features that facilitate laundering. A leading developer known as "Pluto" announced his resignation after a vote to block transactions linked to North Korean hackers was overturned. THORChain founder John-Paul Thorbjornsen reported that none of the wallets listed by the FBI had interacted with the protocol, emphasizing the challenge of censoring such transactions.
The Bybit hack and subsequent laundering through THORChain sparked widespread discussion in the cryptocurrency community. This incident highlights the importance of security and oversight in cryptocurrency technology and the necessity of active engagement with law enforcement agencies.
