Bybit Battles To Recover $1.4 Billion In Crypto Theft

(MENAFN- The Arabian Post)

Bybit, the Dubai-based cryptocurrency exchange, is grappling with the aftermath of a massive cyberattack that resulted in the theft of approximately $1.4 billion worth of digital assets. The breach, attributed to the North Korean-linked Lazarus Group, has been described as the largest in the history of the crypto industry.

The hackers exploited vulnerabilities in Bybit's cold wallet infrastructure, which is typically considered more secure than online hot wallets. Bybit's CEO, Ben Zhou, disclosed that the attackers manipulated transaction interfaces and hijacked the cold wallet, redirecting its contents to unidentified addresses. The stolen assets, primarily Ethereum, have been rapidly converted into Bitcoin and dispersed across thousands of wallets to obfuscate their trail.

Zhou provided a detailed breakdown of the stolen funds: approximately 77% remain traceable, 20% have“gone dark,” and 3% have been successfully frozen. The term“gone dark” refers to funds that have been laundered through complex methods, making them untraceable. The traceable portion, roughly $1.07 billion, offers a glimmer of hope for recovery efforts.

The hackers employed sophisticated techniques to launder the stolen assets, including the use of decentralized exchanges like THORChain. Approximately 83% of the stolen Ethereum was converted into Bitcoin and distributed across nearly 7,000 wallets, each holding an average of 1.71 BTC. This fragmentation strategy complicates tracking and recovery efforts.

Bybit has initiated a bounty program to incentivize the recovery of stolen funds, offering up to 10% of the recovered assets to individuals who assist in freezing or retrieving the stolen cryptocurrencies. The exchange has also assured its users that it remains solvent and is taking measures to compensate for any unrecovered coins.

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The incident has raised significant concerns about the security of cryptocurrency exchanges and the evolving tactics of cybercriminals. The Lazarus Group, known for its cybercrime operations linked to North Korea, has been implicated in several high-profile crypto thefts in recent years. Their methods often involve spear-phishing attacks and the use of malware to infiltrate systems.

Arabian Post – Crypto News Network

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