In a startling revelation, Ben Zhou, the CEO of Bybit, disclosed that a staggering 20% of the assets stolen in a $1.4 billion hack is now beyond recovery. The breach, believed to have been orchestrated by the notorious North Korean cyber group Lazarus, took place on February 21, resulting in the theft of 400,000 ETH and various ETH-based tokens. Zhou has emphasized the urgency of the next two weeks for freezing the remaining stolen assets.
Is Most of the Stolen Cryptocurrency Recoverable?
Zhou confirmed that 77% of the seized assets remain traceable, with 3% already successfully frozen. However, the loss of 20% of the funds, including around 79,655 ETH, is alarming, as they were routed through the KYC-free exchange eXch, rendering them untraceable. Zhou assured that updates on the situation will be forthcoming.
How Did Hackers Convert Stolen Assets?
The hackers, utilizing the OKX Web3 proxy system, converted 83% of the stolen cryptocurrency into Bitcoin, spreading the assets across 6,954 wallets, predominantly through THORChain, a decentralized protocol. This protocol has sparked discussions about its role in allowing such movements, as members weigh the implications of halting ETH transfers.
- 20% of the $1.4 billion in stolen assets is now untraceable.
- 77% of the stolen funds, equating to 3% frozen, are still trackable.
- THORChain facilitated the conversion of 72% of the assets into Bitcoin.
- Chainflip promptly suspended transfers to bolster security.
As the crypto community grapples with these developments, proactive measures and transparent communication will be vital in restoring trust and safeguarding digital assets against future threats.
