The Bybit hacker is moving fast; over 54% of the stolen funds are already been laundered, with $605 million worth of ETH washed through cross-chain swaps.
The $1.5B Bybit hack on Feb. 21, the biggest crypto heist ever, has been traced back to North Korea’s Lazarus Group, according to blockchain sleuths like Arkham Intelligence. While analysts race to track the funds, the hacker is slipping them through THORChain, a protocol now under fire for enabling anonymous transactions.
THORChain’s swap volume soared past $1B after the hack, but backlash hit hard when a vote to block Lazarus-linked transactions got overturned. This led to core developer “Pluto” quitting, saying he wouldn’t contribute anymore. Validator TCB also threatened to leave if THORChain didn’t stop the flow of illicit funds.
Meanwhile, the FBI is calling on exchanges and validators to cut off Lazarus, confirming North Korea’s role in the attack. But THORChain founder John-Paul Thorbjornsen says the protocol isn’t to blame, arguing no sanctioned wallet has interacted with it and that blocking funds in real-time is unrealistic.
The hacker still holds $514 million ETH, and with no immediate way to stop them, as the crypto world is watching closely. Some experts say this hack shows a bigger issue: bad actors can misuse decentralized platforms without regulators being able to stop them, while others think, it will push governments to crack down on crypto, leading to stricter rules for privacy-focused platforms.
Also Read: What Bybit Did Right After $1.5 Billion Hack and What WazirX Could Learn?
