Bybit CEO Updates on $1.4B Hack: 68.5% Traced, North Korean Link

In a revealing update shared on X, Bybit CEO Ben Zhou has offered fresh insight into the February crypto heist that saw $1.4 billion siphoned from the exchange. According to Zhou, investigators have managed to trace approximately 68.5% of the stolen funds—roughly $960 million—while over $386 million, or 27.5%, has gone cold.

Zhou explained that the untraceable assets have mostly been funneled through privacy-focused services. “The untraceable funds primarily flowed into mixers, then through bridges to P2P and OTC platforms,” he noted, naming Wasabi, CryptoMixer, Tornado Cash, and Railgun as key tools used in the laundering process.

The perpetrators—suspected to be the notorious North Korean Lazarus Group—have already converted 84.4% of the stolen assets, worth nearly $1.2 billion, from Ethereum (ETH) to Bitcoin (BTC) using THORChain, a decentralized cross-chain liquidity protocol. These funds were then dispersed across more than 35,000 wallets, complicating efforts to recover them.

Despite the scale of the breach, Zhou said only 3.8% of the assets have been successfully frozen to date.

However, Bybit’s response has been swift and strategic. Since the breach, the exchange has partnered with Zodiac Custody to enhance its security infrastructure and prevent future exploits. Market data suggests these efforts are paying off. As of April, Bybit has reclaimed its 7% market share and currently ranks as the second-largest exchange globally, boasting a daily trading volume of $1.9 billion, trailing only Binance.

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The platform has also launched an aggressive counter-campaign, offering a $140 million bounty—10% of the stolen amount—to incentivize whistleblowers and hackers to help recover the funds. Over 5,400 bounty reports have been submitted, though only 70 have been deemed credible.

With 3.5 million weekly visitors and rising, Bybit appears to be weathering the storm. But the question remains: can it fully bounce back from one of the biggest crypto heists in history?

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Sean Williams

I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!