The hackers behind the massive Bybit breach have started moving their stolen funds. According to MetaMask Head of Security Taylor Monahan, at least 209,384 ETH, worth around $480 million, has already been converted into Bitcoin.
This represents more than half of the total 400,000 ETH stolen from the exchange, not including other drained tokens.
Lazarus Group Accused of $1.5 Billion Bybit Hack
Blockchain analysis firm Arkham Intelligence revealed that at least $240 million of this stolen crypto was laundered through THORChain. The firm noted that the hackers primarily swapped the funds for native Bitcoin, making it more difficult to trace.
The attack on Bybit has been linked to North Korea’s notorious Lazarus Group. Last week, Arkham Intelligence, citing online investigator ZachXBT, reported that the group was behind the $1.5 billion exploit.
The U.S. Federal Bureau of Investigation (FBI) later confirmed this, identifying the attackers as part of North Korea’s “TraderTraitor” network.
In a statement, the FBI explained that the hackers had already converted a portion of the stolen funds into Bitcoin and dispersed them across thousands of addresses on multiple blockchains.
The agency warned that the stolen assets would likely be further laundered before being exchanged for fiat currency. The group is known for splitting funds across multiple protocols and executing thousands of separate transactions, making detection more difficult.
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THORChain Sees Unprecedented Surge in Activity
THORChain, a decentralized cross-chain swap protocol, has seen a record spike in transaction volume following the Bybit hack.
On February 26th, it processed $859.61 million in swaps, the highest daily volume in its history. The following day, an additional $210 million in swaps pushed the total beyond $1 billion in under 48 hours.
The surge in activity has raised concerns that THORChain is being used as a tool for laundering stolen funds. The protocol allows users to swap assets across different blockchains without relying on centralized exchanges, making it attractive to those seeking to move funds anonymously.
A Growing Threat to Crypto Security
The Bybit hack is one of the largest in recent history and highlights the growing threat posed by state-sponsored cybercriminals.
With Lazarus Group continuing to exploit vulnerabilities in the crypto space, security experts and law enforcement agencies are working to track and recover stolen assets. However, the hackers’ use of advanced laundering techniques makes this a difficult task.
As investigations continue, the crypto industry faces increasing pressure to strengthen security measures and prevent similar attacks. The Bybit incident serves as a stark reminder of the risks involved in the digital asset space and the need for robust protection against cyber threats.
Also Read: Bybit Secures In-Principle Approval to Launch Virtual Asset Platform in UAE Despite Recent Hack