Hackers successfully laundered 499,000 ETH ($1.39 billion) stolen from the Bybit crypto exchange, using THORChain and methods avoiding KYC.
FBI Involvement
The FBI confirmed the link between the Bybit hack and North Korea. In a PSA on February 26, 2025, the agency stated that the 'TraderTraitor' group was responsible for the theft. Hackers converted portions of the stolen funds into Bitcoin and other cryptocurrencies, dispersing them across thousands of addresses.
How the Hack Happened
The hack occurred during a routine transfer of Ethereum from a cold wallet to a warm one for daily trading. Attackers exploited security vulnerabilities to access the funds, transferring them to an unknown address. Bybit assured users that their holdings remained safe.
Efforts to Recover Stolen Funds
Bybit is actively working to recover the stolen ETH by involving cybersecurity experts and blockchain analysts, offering a 10% bounty on recovered funds, approximately worth $140 million.
The Bybit case has increased concerns about North Korean cyber operations against the crypto industry. The FBI and analytical firms have identified over 11,000 wallets linked to the hack.
