Cybercriminals, Lazarus Group, Allegedly Clean $1.5B From Bybit Hack Using THORChain Decentralized Exchange
In the aftermath of the recent Bybit hack, a significant portion of the stolen funds has been processed through various cryptocurrency platforms, with THORChain and OKX emerging as key players in the transaction chain. According to reports, 361,255 ETH, worth approximately $900 million, was processed through THORChain. Remarkably, these transactions remain traceable. Bybit Co-founder and CEO, Ben Zhou, revealed that the hackers primarily utilized THORChain to convert ETH into Bitcoin (BTC) following the breach. The involvement of THORChain in processing these illicit transactions has brought the protocol under scrutiny. However, supporters argue that as an open-source and decentralized protocol, it operates independently and does not function as a law enforcement entity. Meanwhile, 40,233 ETH, valued at $100 million, was moved through the OKX Web3 proxy. Of this amount, 16,680 ETH remains traceable, while 23,553 ETH, equivalent to $65 million or around 5%, is currently untraceable. Interestingly, One-eXch, a no-KYC swap service, has refused to freeze assets connected to the hack. The North Korean-affiliated Lazarus Group is suspected of laundering funds stolen in the Bybit hack, transferring 500,000 Ethereum (ETH) primarily into Bitcoin (BTC). Zhou revealed that 417,348 ETH, valued at $1 billion, was converted into Bitcoin across 6,954 wallets, averaging 1.71 BTC per wallet. In an effort to stem the flow of the stolen funds, Bybit has established a website for tracking the movement of the stolen funds and is offering a bounty to those who assist in freezing them. So far, the platform has identified seven exchanges cooperating in the effort to freeze the stolen funds. Eleven entities, including Mantle, Paraswap, and ZachXBT, have played key roles in this endeavour. Blockchain security firm Arkham Intelligence reported that THORChain processed over $5.5 billion in transaction volume following the February 21 Bybit hack. Crypto commentator Yogi has alleged that THORChain played a role in laundering $605 million linked to North Korea on March 4. The saga took an interesting turn on February 28 when a developer known as "Pluto" resigned after a decision to block transactions linked to North Korean hackers was overturned. The incident highlights the complexities and challenges faced by decentralized platforms in balancing security and maintaining their ethos of decentralization and anonymity. As the investigation continues, it remains to be seen how the cryptocurrency community and regulatory bodies will respond to these events and whether they will lead to increased scrutiny and regulation of decentralized finance (DeFi) platforms.
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