Chainalysis Finds North Korean Hackers Involved in Bybit Hack Investigation

• Chainalysis investigated the recent Bybit hack involving $1.5B ETH hack. 
• North Korean hackers seem to be involved in the hack. 

Bybit’s recent hack involving $1.5 billion worth of ETH is still making rounds in the industry. The exchange bounced back sooner than expected by closing the ETH deficit within a couple of days. However, several industry players are planning to uncover the hack to take measures against these types of hacks. 

Blockchain analytics platform Chainalysis investigated this massive hack. It published a report explaining how the hack took place, the hackers’ techniques, and procedures. Notably, Chainalysis uncovered the link between the Democratic People’s Republic of Korea (DPRK) and the Bybit hack. 

The Bybit attack followed a common strategy employed by the North Korean hackers. It involves social engineering and complicated fund laundering techniques to ensure stolen funds are moved without any suspicion. Furthermore, the investigation revealed that stolen funds from Bybit combined with stolen funds from other hacks in the same blockchain addresses. 

North Korean Hackers Responsible for Major Share of Crypto Hacks 

As per one of the other Chainalysis’s reports, North Korean hackers stole around $660.5 million in various incidents in 2023. When it comes to 2024, the stolen amount increased to $1.34 billion in 47 incidents. The hackers are advancing at a faster pace compared to the crypto trading platforms and firms’ security. Overall, $2.2 billion worth of funds were stolen by these hackers in 2024. 

Meanwhile, Bybit and other crypto exchange platforms are collaborating to prevent future hacks of this magnitude. Bybit has already taken various measures such as publishing its POR publicly to improve transparency. It is also collaborating with blockchain forensic experts to retrace funds. 

Bybit launched a recovery bounty program announcing 10% of the recovered amount to individuals who can recover the funds. It extended this program, offering 5% payments upfront to anyone who freezes the funds stolen. 

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