Bybit CEO Ben Zhou disclosed that nearly 20% of the $1.4 billion stolen in a recent cyberattack is untraceable following an attack attributed to North Korea-backed hackers.
In a March 4 update on X, Zhou noted that about 77% of the stolen assets remain traceable, but the laundered portion complicates recovery efforts. The attackers primarily utilized THORChain, a cross-chain liquidity protocol, to convert stolen Ethereum into Bitcoin.
THORChain faces criticism for failing to prevent DPRK-linked hackers from laundering approximately $1 billion in stolen assets. An investigation revealed that around 83% of these funds were converted to Bitcoin and dispersed across nearly 7,000 wallets. The recent findings have heightened scrutiny regarding THORChain’s response to the issue.
A user on X criticized THORChain’s response to stolen funds as “negligence at best, greed at worst,” highlighting frustration in the crypto community. Unlike other protocols, THORChain validators did not take significant action against the theft. The situation intensified when core contributor Pluto resigned in protest after a governance proposal to stop ETH transactions was rejected.
Zhou noted that 72% of the $900 million stolen funds were traced through THORChain. Approximately 16%, or 79,655 ETH (around $160 million), was lost via ExCH, a centralized crypto mixing service. Additionally, about $65 million remains untraceable while Bybit awaits more information from OKX’s Web3 wallet.
Despite the ongoing crisis, collaborative efforts have led to some progress in freezing stolen assets. Zhou revealed that 11 parties, including Mantle, ParaSwap, and blockchain investigator ZachXBT, have assisted in recovering some funds, with over $2.1 million in bounties paid out.
Meanwhile, Bybit is moving closer to securing a full operational license in the UAE, receiving in-principle approval from the Securities and Commodities Authority (SCA) on February 27. This approval is a significant step toward full regulatory authorization, enabling Bybit to expand its digital asset services to retail and institutional investors despite dealing with one of the largest crypto hacks in history.
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