Bybit Hack Update: Hackers Use Crypto Mixers to Launder Stolen Funds

• Bybit CEO Ben Zhou revealed that 68.57% stolen funds are still traceable in the latest update. 
• Hackers used mixers such as Wasabi, CryptoMixer, Tornado Cash, and Raigun to make funds disappear. 

The Bybit hack is the largest and most advanced hack in the history of crypto. The exchange didn’t affect its operations and covered the ETH deficit within a couple of days. However, the Bybit CEO and bounty hunter team are working relentlessly to trace and freeze stolen ETH. 

Bybit CEO Ben Zhou shared details about bounty reports and stolen funds earlier today. 68.57% of the total hacked funds remain traceable, while 27.59% went dark, and 3.84% funds were frozen. Even though it’s been over a month, the fact that 68.57% of funds are traceable is noteworthy. 

Bybit Hackers Launder Stolen Funds Through Crypto Mixers

The executive summary shared by Ben Zhou mentioned that the hackers used crypto mixers to make stolen funds disappear. Wasabi, CryptoMixer, Tornado Cash, and Raingun are some of the crypto mixer platforms used by hackers. 

Crypto mixers usually hide the origin and whereabouts of crypto funds. They pool funds from multiple sources, mix them, and redistribute them. It is difficult to trace the funds that flow through crypto mixers. Lazarus group resorted to the above-mentioned crypto mixers to make it difficult to trace the stolen funds. 

The stolen funds were transferred to crypto-swap and cross-chain services after passing through mixers. Thorchain, eXch, Lombard, LiFi, Stargate, and SunSwap are the mentioned platforms in the report. The funds finally reached OTC and P2P features on crypto exchange services to convert them into other cryptocurrencies ot fiat currencies. 

eXch crypto exchange recently announced that it is going to shut down from May 1 due to allegations related to the Bybit hack. Several blockchain investigators, such as ZachXBT, alleged that the platform helped the Lazarus group launder stolen funds from the hack. 

The team reported that 5,443 bounty reports were submitted in the last 60 days. However, only 70 of them are valid. Ben Zhou called more bounty hunters and asked for help to decode crypto mixers to trace the funds. 

Highlighted Crypto News Today: 

‌Metaplanet Boosts Holdings Amid Market Volatility By Adding 330 BTC