Hackers behind the $1.5 billion cryptocurrency theft from Bybit have developed sophisticated methods to launder the stolen funds. They use mixers and P2P platforms to conceal transaction trails and complicate the tracking process.
Using Mixers for Trace Concealment
Hackers moved 193 BTC, valued at $16 million, through the Wasabi mixing service to conceal transaction trails. This process scattered the assets across P2P networks. Other mixers, such as CryptoMixer, Railgun, and Tornado Cash, are also used, making tracking efforts more complex by merging multiple transactions.
ETH to BTC Conversion via THORChain
According to Bybit CEO Ben Zhou, 440,091 ETH from the stolen funds, valued at $1.23 billion, was converted into 12,836 BTC. The conversion utilized protocols like THORChain, allowing hackers to avoid centralized exchanges.
Tracking Difficulties in P2P Networks
After conversion, the hackers dispersed the Bitcoin into 9,117 unique wallets, each holding an average of 1.41 BTC. These funds, processed through mixers, were further distributed across P2P networks, significantly complicating tracking efforts for investigators. Meanwhile, 88.8% of the stolen assets remain under observation, while 3.5% has been frozen with the help of exchanges and analytics companies.
Despite effective laundering methods, a significant portion of the stolen assets remains under monitoring. Bybit is actively collaborating with partners to recover the assets and has announced a $140 million reward for assistance in freezing and identifying these assets.
