Bybit stolen funds likely headed to crypto mixers next: Elliptic đ
The $1.4 billion hack of Bybit is likely to see the stolen crypto laundered through mixers, as the hackers attempt to hide the transaction trail. Elliptic, a blockchain security firm, traced the theft to North Koreaâs Lazarus Group, noting the groupâs usual laundering methods.
On February 21, hackers stole approximately $1.46 billion from Bybit, making it the largest crypto heist to date. The Lazarus Groupâs laundering process typically involves exchanging stolen assets for Ethereum (ETH) and then using methods like crosschain bridges, decentralized exchanges, and crypto mixers to obscure the trail.
Within hours of the theft, the stolen funds were distributed across 50 wallets, each holding about 10,000 ETH. These wallets are now being emptied, with at least 10% of the stolen assets already moved.
Elliptic reports that a crypto exchange, eXch, has played a role in facilitating the laundering. Despite requests from Bybit, eXch has allowed the stolen funds to be traded anonymously. eXch denied any involvement with laundering for the Lazarus Group.
This isnât the first time Lazarus has used mixers; between 2020 and 2023, over $200 million in stolen crypto was laundered through mixers and peer-to-peer platforms. However, according to Chainalysis, the group has shifted to using crosschain bridges as mixers become less reliable.
By February 24, Bybit CEO Ben Zhou confirmed that the exchange had replaced the stolen Ether, and a new proof-of-reserve report would be published soon.
