ByBit Hack: 70% Of Stolen ETH Laundered, 156K Left

In a new development, reports indicate that ByBit hackers are in the process of moving all the stolen Ethereum. The 499,000 ETH are worth $1.5 billion and, at the current rate, could be fully recycled within three days.

This situation emerges as Circle is criticised for not blocking wallets linked to the attack.

The Lazarus Group Intensifies Laundering

On 1 March, the North Korean group transferred 62,000 ETH worth $138 million. Currently, 156,500 ETH remain unlaundered.

EmberCN, a crypto investor who is monitoring the whole affair, said that the speed with which the funds are being moved suggests that the process could be over in a few days.

EmberCN wrote on X (formerly Twitter):

"Since the hacker resumed laundering at 3pm yesterday, he has already laundered 62,200 ETH ($138 million). Now, of the 499,000 ETH stolen on ByBit, only 156,000 ($346 million) have yet to be recycled. In three days, everything will be completed."

The report also confirms TRM Labs' claim of increasing operational efficiency in this process.

According to TRM Labs, the group is leveraging cutting-edge technologies such as DEX exchanges, intermediary wallets and cross-chain bridges to move recycled ETHs. These tactics are making it difficult for regulators to track the stolen funds.

The FBI released a statement saying it has identified a North Korean hacker collective known as TraderTraitor, which played a key role in the infiltration of ByBit.

ByBit has announced a bounty programme worth $140 million for anyone who helps track down the hackers or stolen ETH. According to reports, the programme has so far distributed $4.2 million to 16 people who have contributed to the investigations.

Circle under indictment for delay in blocking wallets

The crypto company Circle is at the centre of criticism for delaying the blacklisting of wallets controlled by hackers. Blockchain researcher ZachXBT said the company took more than 24 hours to take action, giving hackers time to move funds.

ZachXBT also highlighted other incidents where Circle failed to block suspicious activity in a timely manner, such as the Nomad and Ledger Bridge breaches.

He also argued that Circle, as a key issuer of stablecoin, should take a more aggressive approach to blocking wallets instead of relying solely on law enforcement.

In response, Circle CEO Jeremy Allaire, said:

"That's not accurate at all. We will publish a post on how we immediately respond to law enforcement requests and do not anticipate the law with our market intel. I don't think it is helpful to the market or users if a private company independently decides to seize funds without a direct request from law enforcement."