The hacker responsible for the staggering $1.4 billion Bybit exploit has now laundered over $335 million in digital assets. Investigators are actively tracking the continuous movement of these stolen funds to uncover further details.
On February 21, the crypto industry witnessed its largest-ever hack, dealing a severe blow to investor sentiment. Bybit suffered a massive loss of over $1.4 billion, primarily in liquid-staked Ether (stETH), Mantle Staked ETH (mETH), and various other digital assets.
According to on-chain data, the hacker has transferred 45,900 Ether (ETH) — valued at approximately $113 million — within the last 24 hours. This recent activity has raised the total laundered amount to over 135,000 ETH, equating to roughly $335 million.
Despite these substantial fund movements, the hacker’s address still holds around 363,900 ETH, worth an estimated $900 million. Pseudonymous blockchain analyst EmberCN pointed out that at the current transfer rate, the hacker could successfully launder the remaining funds in just 8 to 10 days.
North Korea’s Lazarus Group Suspected of Bybit Attack
Prominent blockchain security firms, including Arkham Intelligence, have identified North Korea’s Lazarus Group as the likely perpetrator behind the Bybit exploit. This group has been linked to numerous high-profile cyberattacks targeting the cryptocurrency sector.
Bybit co-founder and CEO Ben Zhou responded forcefully to the incident, declaring “war” on the Lazarus Group just four days after the attack, on February 25.
Meanwhile, blockchain analytics firm Elliptic has flagged 11,084 cryptocurrency wallet addresses suspected of being associated with the Bybit exploit. This list is expected to expand as ongoing investigations uncover further connections.
Bybit’s Response Aims to Restore Trust in Centralized Exchanges
Despite the magnitude of the hack, Bybit’s swift and decisive response has drawn praise from industry experts and may help restore trust in centralized cryptocurrency exchanges (CEXs).
Dan Hughes, founder of the decentralized finance (DeFi) platform Radix, highlighted Bybit’s proactive measures in preventing a broader market panic:
“Assuming the worst is behind us, the manner in which Bybit handled the situation may actually recover some confidence in CEXs. It would demonstrate that with responsible leadership, centralized exchanges can be ‘trustworthy’ custodians of digital assets.”
Hughes further noted that Bybit’s ability to absorb the financial loss is critical in maintaining investor confidence. So far, the exchange has honored all withdrawal requests, reassuring users about its financial stability.
Bybit also took swift action to compensate for the losses. By February 24 — just three days after the attack — the company had fully replaced the stolen $1.4 billion in Ether, further strengthening its commitment to customer security.
A Major Setback for the Crypto Industry
The Bybit hack alone accounts for more than half of the total $2.3 billion stolen in crypto-related attacks in 2024, marking a significant blow to the industry.
As investigations continue and security measures tighten, the incident serves as a stark reminder of the ongoing risks in the cryptocurrency space. While Bybit’s response has been commendable, the attack underscores the urgent need for improved security measures to prevent future exploits of this scale.
Read Also: Bybit Breach: $3.64M Swapped to DAI
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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