Ben Zhao, the CEO of Bybit, has disclosed alarming insights regarding a significant cyber theft that occurred in February, estimating that nearly 27% of the stolen cryptocurrencies have vanished from tracking efforts. This concerning statistic stems from activities involving crypto mixers, with total losses amounting to approximately $1.4 billion.
What Happened During the Bybit Hack?
In a recent social media update, Zhao revealed that 68.57% of the assets taken in the attack are still traceable, while 3.84% have been temporarily frozen. The cyberattack, which is among the largest in the history of cryptocurrency, resulted in the theft of around $1.5 billion in Ethereum and Lido Staked Ether. Investigations attribute the assault to the notorious Lazarus Group from North Korea.
How Did Thieves Conceal Their Tracks?
Evidence suggests that various methods, including mixing systems and cross-chain bridges, were utilized to obscure the paths of the stolen cryptocurrencies. These techniques enabled thieves to shift their assets across multiple platforms, complicating recovery efforts.
Moreover, the movement of stolen funds through diverse transfer methods has made pinpointing their current locations exceedingly difficult. Zhao elaborated that a portion of the stolen Bitcoin was laundered via Wasabi and subsequently moved through platforms like CryptoMixer and Tornado Cash. This web of transactions extended to OTC or P2P systems, further complicating tracking efforts.
In an unexpected twist, eXch, one of the platforms involved, is set to shut down operations in May following recent regulatory challenges, raising further concerns regarding asset security and traceability.
- 27% of stolen cryptocurrencies are untraceable.
- 68.57% of hacked assets remain trackable.
- Cyberattack attributed to North Korea’s Lazarus Group.
- Mixing systems and cross-chain methods used to obscure funds.
Efforts to track the stolen assets are ongoing, with international cybersecurity and financial agencies enhancing their methodologies. Increased focus on developing advanced tracking technologies and regulatory frameworks is anticipated to address similar incidents in the future.
