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- Bybit suffered the largest crypto heist ever, with liquid-staked Ether and other assets stolen.
- North Korea’s state-backed hackers are linked to the exploit, laundering over $335M so far.
- CEO Ben Zhou declared “war” on the hackers while blockchain analysts tracked stolen funds.
The cryptocurrency world was shaken to its core on February 21, when Bybit, one of the largest centralized exchanges, fell victim to a historic $1.4 billion exploit. The massive breach targeted liquid-staked Ether, Mantle Staked ETH (mETH), and several other digital assets, making it the most significant hack in the history of crypto.
As industry stakeholders scrambled to assess the fallout, new developments revealed that the hacker has already laundered more than $335 million in digital assets. On-chain data indicates that over the past 24 hours alone, the attacker moved 45,900 Ether (ETH), worth approximately $113 million, bringing the total laundered amount to a staggering 135,000 ETH.
Despite these movements, the hacker still controls approximately 363,900 ETH, valued at around $900 million, according to pseudonymous blockchain analyst EmberCN.
“There are still 363,900 ETH ($900 million) in the Bybit hacker address. At the current rate, it will only take another 8 to 10 days to clean it up,” EmberCN warned.
Bybit Hack Traced to North Korea’s Lazarus Group
Blockchain security firms are tracking the stolen funds, identifying North Korea’s Lazarus Group as the likely culprit. The state-backed hackers, tied to major crypto heists, now add the Bybit exploit to their list.
In response to the allegations, Bybit co-founder and CEO Ben Zhou took an unprecedented step on February 25, declaring “war” on the Lazarus Group. His statement underscored Bybit’s commitment to tracking down the attackers and ensuring accountability in what has now become a global cybersecurity crisis.
Elliptic has flagged 11,084 crypto wallet addresses tied to the Bybit exploit, intensifying the investigation. Experts expect the list to grow, tightening the net around the hacker.
Despite the severity of the breach, Bybit’s swift response may serve as a turning point for centralized exchanges (CEXs) striving to regain user confidence. Dan Hughes, founder of the decentralized finance platform Radix, believes that Bybit’s crisis management could ultimately reinforce trust in CEXs:
“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 adults at the wheel, centralized exchanges can be ‘trustworthy’ and responsible custodians of our assets.”
Hughes also emphasized that Bybit’s ability to absorb the loss is crucial:
“Primarily, it matters most if Bybit can indeed absorb that loss as claimed. So far, withdrawals have been honored, and all seems good.”
Bybit Recovers $1.4B Stolen Ether in 3 Days
Bybit has remained steadfast in its commitment to its users, ensuring that all withdrawals continue without disruption. In a remarkable show of resilience, the exchange successfully replaced the stolen $1.4 billion in Ether within just three days by February 24 demonstrating financial strength rarely seen in such crises.
However, the magnitude of this hack casts a long shadow over the crypto industry. The Bybit breach alone accounts for more than half of the $2.3 billion stolen in crypto-related hacks in 2024, marking a severe blow to the sector’s security credibility.
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