In a significant update, Bybit’s Ben Zhou shared that 77% of the illegally obtained ETH can be tracked, while 20% has reportedly found its way to the black market.

CEO of cryptocurrency exchange Bybit Ben Zhou issued a comprehensive recap concerning the hacked funds, enlightening readers on the methods used for tracking and managing the stolen assets.

The analysis indicates that approximately $1.4 billion in cryptocurrency, including about 500,000 ETH, was compromised. Of this amount, 77% remains traceable, 20% has gone off the grid, and 3% is currently frozen.

The findings reveal that an impressive 83% of the stolen Ethereum—around 417,348 ETH, equating to nearly $1 billion—has been transformed into Bitcoin across 6,954 unique wallets, each holding an average of 1.71 BTC. Zhou stressed the importance of the current week for freezing the assets, as they are likely to be moved through exchanges, OTC services, and peer-to-peer networks.

The report also points out that the hacker predominantly utilized THORChain, a decentralized cross-chain liquidity protocol, to exchange ETH for BTC. Notably, around 361,255 ETH—valued at approximately $900 million and constituting 72% of the stolen ETH—was laundered through THORChain. According to DeFiLlama, THORChain experienced a remarkable weekly trading volume of $4.67 billion, with a portion of this upsurge likely associated with the activities of the individuals responsible for the Bybit hack.

Moreover, about 79,655 ETH, representing roughly 16% of the stolen funds, was funneled through an automated cryptocurrency exchange known as ExCH, although updates on its status are still pending. Another 40,233 ETH, worth around $100 million (8% of the total), was processed via OKX Web3 services. Out of this sum, 16,680 ETH can still be traced, while 23,553 ETH—approximately $65 million (5%)—is currently unaccounted for, necessitating further information from the OKX Web3 Wallet.

Ben Zhou also shared updates on Bybit's bounty initiative that allows users to connect their wallets and act as 'bounty hunters.' This program includes a real-time ranking system that monitors both compliant and non-compliant actors along with their response times regarding transactions associated with the sanctioned Lazarus Group. Bybit is providing a 5% bounty for any funds successfully frozen by exchanges, mixers, or other intermediaries, with immediate payments issued upon successful freezing.

The report further revealed that a total of 11 different entities contributed to freezing the compromised funds, with key players including Mantle, Paraswap, and blockchain investigator ZachXBT. So far, Bybit has distributed $2,178,797 USDT among 11 bounty hunters as part of this effort.

In a staggering incident, Bybit's exchange was hit by a record-breaking hack totaling $1.5 billion, marking it as the largest breach experienced by a centralized exchange to date. The attack was reportedly executed via a targeted malware exploit associated with the Lazarus Group, resulting in substantial losses in Ethereum.

On February 21st, Bybit experienced a security breach Ben Zhou, the CEO of Bybit, promptly admitted to the breach and provided an initial account of the situation almost immediately after the incident unfolded. In response, the exchange swiftly acted by releasing a detailed post-mortem report, securing a bridge loan to protect customer assets and facilitate withdrawals, and introducing a 10% bounty program to encourage the recovery of stolen funds.

The exchange confirmed that it had rectified the shortfall in its Ethereum reserves. It also noted that withdrawal operations had returned to normal, signaling stabilization after the incident.

Just days later, Bybit Please remember that the information on this page is not intended to serve as legal, tax, investment, or financial advice. It's crucial to invest only what you can afford to lose, and we recommend consulting with a financial advisor if you have any uncertainties. For more details, please refer to the terms and conditions and the support resources provided by the issuer or advertiser. MetaversePost strives for accurate and impartial reporting, but keep in mind that market conditions can change without notice.