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- Bybit CEO Ben Zhou confirms that $1.4 billion in stolen crypto is being tracked, with 77% of the funds still recoverable.
- Hackers converted $1 billion in stolen Ethereum into Bitcoin, with ThorChain playing a key role in the laundering process.
- Authorities are racing to freeze funds as hackers attempt to move assets through OTC desks and peer-to-peer platforms.
Bybit CEO Ben Zhou has disclosed that investigators are currently tracking $1.4 billion worth of stolen cryptocurrency. Authorities are confident that at least 77% of the stolen funds can be successfully recovered before thoroughly laundered.
Hackers actively move assets through centralized exchanges, over-the-counter (OTC) desks, and peer-to-peer (P2P) networks to evade detection. Authorities monitor these platforms closely to prevent further illicit transfers and disrupt laundering efforts.
According to Zhou, investigators work closely with blockchain analytics firms and multiple exchanges to track the stolen funds. Their primary goal is intercepting laundering attempts before the assets are withdrawn or converted into less traceable forms.
An executive summary of the hack was shared on X, providing critical insights into ongoing investigative efforts. It highlighted various steps to freeze stolen funds before they can be dispersed or hidden beyond recovery.
Bitcoin Conversion Dominates Hackers’ Strategy
A significant portion of the stolen funds has already been converted into Bitcoin through multiple transactions. Zhou confirmed that 83% of the stolen assets, approximately 417,348 ETH valued at around $1 billion, have been swapped into Bitcoin.
Hackers relied heavily on ThorChain to quickly convert 361,255 ETH, worth approximately $900 million, into Bitcoin. This method enabled them to bypass some traditional monitoring systems, making tracking the laundering process more challenging.
Investigators have meticulously traced these transactions to prevent the complete dispersion of the stolen funds. Their continued efforts aim to freeze illicit assets before fully laundered or lost beyond recovery.
Millions Laundered Through ExCH and OKX Web3 Proxy
Despite rigorous tracking efforts, certain portions of the stolen funds remain challenging to recover. Around $172 million, equivalent to 79,655 ETH, was processed through ExCH, a platform under strict investigation.
Additionally, approximately $100 million, or 40,233 ETH, was funneled through the OKX Web3 proxy to obscure the laundering process. Out of this amount, investigators have not yet traced or frozen $65 million, or roughly 23,553 ETH.
Bounty Program Supports Fund Recovery Efforts
In order to facilitate the recovery of stolen assets, 11 different entities have contributed to freezing suspicious funds linked to the hack. Key support came from Mantle, Paraswap, and blockchain investigator ZachXBT, who have played instrumental roles in tracing transactions.
Bybit and its investigative partners have distributed $2.18 million in USDT as bounty rewards to individuals assisting in recovery. The bounty program remains active as authorities continue seeking additional assistance in identifying laundering patterns and securing compromised funds.
As hackers persist in attempting to move stolen funds through OTC and P2P networks, forensic teams are urging exchanges to implement stricter monitoring protocols. Enhanced security measures could significantly reduce laundering risks and aid in successfully recovering the stolen assets.
Conclusion
With a substantial portion of the stolen assets still within reach, investigators are ramping up efforts to track and freeze illicit funds. Authorities are actively collaborating with blockchain analytics firms and exchanges to ensure the stolen assets do not disappear beyond retrieval.
Also Read: Bybit Hack: Lazarus Group Steals $1.5B in Ethereum, FBI Investigates
