- Bybit saw a $1.5 billion hack, marking the largest cryptocurrency theft to date, targeting its cold wallet storage system.
- Blockchain corporations traced the stolen ether as it moved across multiple wallets, with laundering efforts linked to North Korea’s Lazarus Group.
- Bybit blocked a bridge loan to cover losses, assuring users that withdrawals remain standard despite initial fears of insolvency.
Bybit cryptocurrency exchange has undergone a huge security breach, resulting in the loss of approximately $1.5 billion in digital assets. The invasion, now believed the largest in the crypto industry’s history, targeted the platform’s cold wallet.
Stolen Funds Moved and Liquidated Across Platforms
The compromised assets, primarily ether, were swiftly transferred through several wallets and liquidated on various platforms. Blockchain analysis firms Elliptic and Arkham Intelligence tracked the movement of the stolen cryptocurrency. Their investigation revealed that the digital assets had been distributed across multiple accounts in an attempt to obscure their trail.
Tom Robinson, chief scientist at Elliptic, confirmed that his team labeled the hacker’s wallet addresses to prevent the funds from being exchanged further. Efforts to trace the assets continue as law enforcement agencies coordinate with blockchain analysis firms.
Bybit Responds Amid Customer Concerns
Following the incident, Bybit CEO Ben Zhou assured users that the exchange’s other cold wallets remain secure. Zhou stated on X that “all withdrawals are NORMAL,” emphasizing that operations would proceed without disruption. Despite the reassurances, users rushed to withdraw their funds, fearing potential insolvency. Zhou later announced that withdrawal outflows had stabilized.
To mitigate the impact of the hack, Bybit secured a bridge loan from undisclosed partners. The funds aim to cover any unrecoverable losses and ensure the exchange’s uninterrupted operations. No timeline was provided for when the investigation might conclude or when users can expect further updates.
Lazarus Group Identified as Perpetrator
Analysts at Elliptic connected the attack to North Korea’s Lazarus Group, a state-sponsored hacking collective notorious for high-profile cryptocurrency thefts. The group has been concerned in targeting crypto outlets since 2017, with prior functions including the theft of $200 million from South Korean exchanges. Elliptic noted that the Lazarus Group uses avant laundering methods to obscure the flow of stolen funds.
The $1.5 billion breach surpasses previous large-scale crypto thefts, including the $611 million Poly Network hack in 2021 and the $570 million Binance incident in 2022. Investigators continue to track the assets while exchanges collaborate to block any further movement of the stolen funds.
