In an escalating saga of cybercrime, the notorious Lazarus Group, alleged to be North Korea’s hackers, have laundered an additional 62,200 Ether (ETH) from the Bybit hack that took place on February 21. This latest movement increases the total laundered assets to a staggering 343,000 ETH or 68.7% of the total assets stolen. With Ether’s current market price, the additional 62,200 ETH translates to approximately $138 million.
This information comes courtesy of a pseudonymous cryptocurrency analyst, EmberCN, who has been tracking the movements from the Bybit hack. EmberCN estimates that the remaining 156,500 ETH will likely be moved within the next three days, an unsettling prospect for the digital currency market.
In response to the escalating situation, the US Federal Bureau of Investigation (FBI) has been ramping up efforts to track down the stolen assets. The FBI has identified 51 Ethereum addresses connected to the Bybit hackers, while blockchain analytics firm Elliptic has identified over 11,000 related cryptocurrency wallets.
Meanwhile, Chainalysis, a crypto forensics company, reported that the hackers have converted some of the stolen Ether into Bitcoin, the Dai stablecoin, and various other assets through decentralized exchanges, cross-chain bridges, and instant swap services that lack stringent Know Your Customer (KYC) protocols.
One particular protocol that has come under fire is the THORChain cross-chain asset swap protocol. The developers of THORChain have faced widespread backlash for enabling a large portion of unauthorized transfers linked to the Bybit hackers. The controversy deepened when a vote intended to block transactions connected to the North Korean hackers was overturned.
In response to the mounting criticism, a developer of the protocol, known as “Pluto”, announced they would cease supporting it. Founder of THORChain, John-Paul Thorbjornsen, also distanced himself from the situation, stating that he is no longer involved with the protocol and none of the sanctioned crypto wallet addresses have interacted with the protocol.
The Bybit hack, valued at $1.4 billion, is the largest breach in the crypto sector to date, surpassing the $650 million stolen in the Ronin bridge hack on March 23, 2022, by more than double. The ongoing movement of the stolen assets and the ongoing efforts to halt these transactions continue to captivate the attention of the crypto community and regulators alike.
