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- Bybit hackers stole $1.4 billion in crypto, and 77% of the funds are still traceable, while 20% have gone dark and 3% have been frozen.
- Efforts to freeze funds continue, and $2.1M was paid to bounty hunters.
A recent post from Ben Zhou, CEO of Bybit, provides an update on the status of $1.4 billion in stolen cryptocurrency. Zhou reveals that tracking shows that 77% of the stolen cryptocurrency remains traceable, 20% was lost permanently, and 3% was successfully frozen.
Most funds were converted from Ethereum (ETH) to Bitcoin (BTC), with significant amounts passing through decentralized and centralized platforms. Stolen cryptocurrency asset tracking and freezing operations continue despite difficulties as hackers attempt to launder the funds through exchanges, over-the-counter (OTC) platforms, and peer-to-peer (P2P) transactions.
Funds Movement and Laundering Techniques
Of the stolen 500,000 ETH, approximately 83%—equivalent to 417,348 ETH valued at around $1 billion—was converted into Bitcoin using 6,954 different wallets. Multiple accounts were used to disperse stolen funds because perpetrators wanted to hide their tracks. The forthcoming week and the following weeks represent essential periods for stopping the complete laundering process of stolen assets.
One key platform used to convert the stolen funds was THORChain, a decentralized liquidity network. According to Bybit’s CEO, 361,255 ETH, or roughly $900 million (72% of the total hacked amount), was processed through THORChain.
In addition to THORChain, 40,233 ETH (worth approximately $100 million) was processed through an OKX Web3 proxy. Out of this, 16,680 ETH remains traceable, while 23,553 ETH—equivalent to around $65 million—has become untraceable, pending further information from OKX Web3.
The $170 million in funds succumbed to the “ExCH” corporation, which subverted 79,655 ETH from the system. The funds have disappeared into darkness because the involved parties do not provide the necessary cooperation, which hinders tracking without additional support.
Efforts to Freeze Funds and Reward Bounty Hunters
A portion of stolen assets has been successfully frozen through mutual cooperation between blockchain analytics firms, security researchers, and exchanges. Mantle and Paraswap, alongside ZachXBT, provided the most substantial contributions to freezing funds among the 11 participating parties.
To incentivize further cooperation, $2,178,797 in USDT has been paid out to bounty hunters who assisted in the tracking and freezing operations. These efforts underscore the importance of community-driven initiatives in combating large-scale crypto theft.
The coming weeks will determine how much of the stolen cryptocurrency can be recovered before it is fully laundered. Hackers are expected to attempt to clear their funds through centralized exchanges, OTC trading platforms, and direct peer-to-peer transactions.
Bybit’s CEO emphasized that ongoing monitoring and swift intervention from exchanges and blockchain security firms will be necessary to prevent further laundering. The ability to freeze assets before reaching their final destinations is crucial, as recovery becomes significantly more difficult once funds are fully anonymized.
The case highlights the evolving tactics used by hackers to move illicit funds and the increasing sophistication of blockchain analytics in countering financial crimes within the cryptocurrency sector.
