Massive Crypto Heist
The Lazarus Group, a North Korean hacking group, is suspected of stealing nearly $1.5 billion in crypto from Bybit in what’s being called the biggest crypto heist ever. The stolen funds included Ethereum (ETH) and Lido Staked Ether (stETH). Researchers quickly linked the attack to the Lazarus Group, known for its history of major crypto platform hacks.
Money Laundering in Progress
According to blockchain analytics firm Elliptic, Lazarus is now laundering the stolen funds. Their usual method involves several steps:
- Swapping:
They exchange stolen tokens for Ethereum (ETH), which is harder to freeze. - Layering: They move the ETH through many wallets, exchanges, and mixers to hide the money trail.
Elliptic reports that Lazarus has already moved around $195 million of the stolen funds. A significant portion of this laundering is happening through the exchange eXch, which allows anonymous transactions. Over $75 million in stolen Bybit funds have been processed through eXch, despite Bybit directly asking them to stop.
eXch’s Response
eXch denies major involvement, claiming only a “small” amount of the stolen funds passed through their exchange. They also stated that fees from these transactions would be donated to charity. However, this statement contradicts Elliptic’s findings.
Bybit’s Recovery
Bybit’s CEO, Ben Zhou, confirmed that all client assets have been fully restored following the hack, and services are back online.
