Breaking: Bybit’s Massive Crypto Heist Update
In a shocking development in the Bybit’s $1.4B hack saga, CEO Ben Zhou revealed that 20% of the stolen cryptocurrency has disappeared into the dark web, while 77% remains traceable and 3% has been frozen. The February 21st attack, attributed to North Korea’s notorious Lazarus Group, stands as one of the largest centralized exchange hacks in crypto history.
Tracking the Digital Trail
According to Zhou’s detailed breakdown:
- 83% (417,348 ETH, ~$1B) converted to BTC across 6,954 wallets
- 20% (~$280M) now untraceable
- 3% (~$42M) successfully frozen
THORChain’s Controversial Role
The hackers have predominantly utilized THORChain for fund conversion, accounting for 72% of all conversion activity. This has led to record-breaking weekly transaction volumes exceeding $4.5 billion on the protocol, triggering intense debate within the DeFi community about decentralized platforms’ role in facilitating illicit transactions.
Industry Response and Recovery Efforts
The FBI has issued urgent warnings to exchanges and validators, labeling this as the ‘biggest money heist in human history.’ Meanwhile, cross-chain platform Chainflip has temporarily suspended its services to prevent further fund laundering, highlighting the growing tension between decentralization principles and security concerns.
Market Implications
This incident has sparked renewed debate about centralized exchange security and the role of DeFi protocols in preventing criminal activities. The crypto industry faces mounting pressure to implement stronger security measures while maintaining the core principles of decentralization.
Source: Bitcoinist