More Than a Quarter of Bybit’s Hacked Crypto Is Now Untraceable

A good portion of the $1.4 billion in cryptocurrency stolen throughout Bybit hack by North Korea’s Lazarus Group has change into untraceable, based on the change CEO Ben Zhou.

In a tweet detailing the present standing of the hacked funds – roughly 500,000 ETH – the exec reported that 27.59% have gone darkish, largely as a result of obfuscation techniques involving crypto mixers and decentralized companies.

Whereas 68.57% of the funds stay traceable, solely 3.84% have been frozen.

Crypto Mixers, Swaps, and 36,000 Wallets

Zhou famous that the first device for laundering the stolen funds was the Wasabi Mixer, adopted by extra dispersion by way of CryptoMixer, Twister Money, and Railgun. The attackers additionally leveraged decentralized cross-chain swap platforms reminiscent of Thorchain, eXch, Lombard, LiFi, Stargate, and SunSwap to switch the belongings throughout blockchains earlier than changing them into fiat by way of peer-to-peer (P2P) and over-the-counter (OTC) exchanges.

Knowledge from Zhou’s report reveals that 432,748 ETH, which is equal to 84.45% of the stolen belongings, has been transformed into Bitcoin by way of Thorchain. Of that, 342,975 ETH (price roughly $960 million) turned 10,003 BTC distributed throughout practically 36,000 wallets, in a bid to hinder traceability.

Regardless of in depth monitoring, solely a fraction of the stolen belongings stay on the Ethereum blockchain, whereas 944 BTC (round $90.6 million) have been funneled by way of Wasabi alone.

The Lazarus Bounty initiative, which was launched to sort out these exploits, has acquired 5,443 reviews over the previous two months, with solely 70 validated. Zhou highlighted the necessity for extra bounty hunters able to unraveling mixer transactions and warned that tracing darkish crypto flows would require important collaborative effort going ahead.

eXch Quits After Accusations of Aiding Lazarus Group

Among the many platforms named within the laundering path was eXch. The privacy-focused crypto change not too long ago announced its plans to stop operations on Could 1, following accusations of laundering $35 million linked to February’s Bybit hack. The platform denied intentional wrongdoing and refuted claims of facilitating felony exercise.

Below mounting worldwide scrutiny and what it known as a “hostile” atmosphere, eXch cited an “lively transatlantic operation” focusing on its shutdown. Together with its exit announcement, eXch additionally stated it’ll launch a 50 BTC fund supporting privacy-focused crypto instruments.