Bybit Theft Update: Half of Stolen Funds Now Untraceable
Three months after a massive crypto heist, blockchain data reveals that nearly half of the $1.4 billion stolen from Bybit has disappeared. The missing $644 million was laundered through various mixing services, making it nearly impractical to track.
Of the stolen funds, $693 million remains visible, while $63 million has been frozen by exchanges adn authorities. The remaining $644 million has gone dark. This notable loss highlights the challenges in recovering stolen crypto.
Most of the laundered funds went through Wasabi Wallet, with $247.5 million processed. Another $94.1 million went through eXch, a service that claimed to shut down but is still active. Smaller amounts were laundered via Tornado Cash and Railgun. The theft, one of the largest on record, making recovery difficult.
Analysts at TRM Labs noted that eXch’s continued operation, despite its claimed closure, is particularly worrying. The service uses pooled transactions,creating opacity and hindering traceability.
The theft originated from a North Korean hacking group,TraderTraitor.They compromised a Safe{Wallet} developer’s laptop, using stolen AWS tokens to bypass security and access Bybit’s funds.The breach occurred in February when a Docker project, disguised as a stock investment simulator, was downloaded onto the developer’s Mac, leading to malware installation.
This incident underscores the need for enhanced security measures in the crypto industry. For more details, check the March article on X.
