Record-Breaking Crypto Hack Update
In a significant development following one of the largest cryptocurrency hacks in history, Bybit CEO Ben Zhou has revealed that 77% of the stolen funds from the recent $1.4 billion breach remain traceable on the blockchain. This announcement comes as investigators race against time to recover the assets before they disappear into the crypto underworld.
Tracking the Stolen Assets
According to Zhou’s detailed breakdown:
- 417,348 ETH ($1 billion): Still traceable after THORChain transfers
- 79,655 ETH ($200 million): Gone dark through ExCH
- 40,233 ETH ($100 million): Passed through OKX’s web3 proxy
- 23,553 ETH ($65 million): Currently untraceable
Hackers’ Sophisticated Conversion Strategy
The attackers have demonstrated remarkable sophistication in their approach, converting 83% of the stolen ETH (approximately 361,255 ETH worth $900 million) into Bitcoin. This conversion was strategically distributed across 6,954 wallets, averaging 1.71 BTC per wallet, using THORChain’s infrastructure.
THORChain’s Record-Breaking Week
The hack has led to unprecedented activity on THORChain, which processed $4.66 billion in swaps during the week ending March 2 – its highest volume ever. The platform earned approximately $5.5 million in fees from these illicit transactions.
North Korean Connection
The attack has been attributed to the notorious North Korean hacking group Lazarus, which compromised SafeWallet, a third-party wallet platform integrated with Bybit. The breach occurred through a sophisticated attack vector involving infected developer devices and manipulated wallet transfers.
Market Impact and Recovery
Despite the massive breach, Bybit has demonstrated remarkable resilience by fully restoring its 1:1 backing of client assets within days of the attack. The exchange secured over $700 million through a combination of OTC trading and direct exchange purchases to maintain customer confidence.
Looking Ahead
The next few weeks will be crucial for fund recovery efforts as law enforcement and crypto security firms race to freeze assets before they’re completely laundered. This incident highlights the ongoing challenges in cryptocurrency security and the critical importance of robust security measures in the digital asset space.