Bybit Exploit: Hackers Launder Over 50% of $1.4B Stolen Funds in One Week

Following the massive $1.4 billion hack of the Bybit exchange on February 21, the perpetrators have laundered over 50% of the stolen funds within a week. According to Lookonchain's February 28 X post, over 270,000 ETH, valued at $605 million (54% of the total stolen funds), has been laundered. The hackers still hold 229,395 ETH, worth $514 million. Blockchain analytics firms, including Arkham Intelligence, have identified North Korea's Lazarus Group as the main culprit. The exploiters have been using THORChain to launder the funds, causing THORChain's swap volume to surge past $1 billion. However, this has led to controversy, with some criticizing THORChain's privacy features for enabling illicit fund laundering. A THORChain developer, known as "Pluto," announced his exit on February 27 after a vote to block North Korean hacker-linked transactions was reverted. The FBI has urged crypto validators and exchanges to cut off the Lazarus Group, confirming North Korea's involvement in the Bybit hack.