Bybit Hack Update: Chase to Recover $1.4B Continues, 89% Still Traceable!

In one of the most devastating cyberattacks in recent history, the North Korean hacker group Lazarus recently stole $1.4 billion from cryptocurrency exchange Bybit. This attack shook the crypto world, raising serious concerns about security.

However, Bybit is fighting back. With support from top blockchain security firms and crypto organizations, it has launched a large-scale effort to recover the stolen funds. According to Bybit CEO Ben Zhou, these efforts are already showing results, with 88.87% of the stolen funds still traceable.

Here’s everything we know about the attack and the chase for the stolen billions!

Bybit Hack: Latest Tracking Updates

Ben Zhou’s latest update confirms that nearly 89% of the stolen assets remain trackable, an improvement from earlier reports that estimated only 77% were traceable.

So far:

• 3.54% of the stolen assets have been frozen
• 7.59% have been lost, making them harder to recover

How Did Lazarus Pull Off the Heist?

Cybersecurity firm Arkham Intelligence offered a bounty to uncover the mastermind behind the hack—and crypto investigator ZachXBT cracked the case. Within just ten days, the hackers moved the stolen funds through THORChain, a decentralized cross-chain protocol.

To hide their tracks, they used several Bitcoin mixing services, including Wasabi, CryptoMixer, Railgun, and Tornado Cash. These tools make it difficult for investigators to trace transactions, adding another layer of complexity to the recovery process.

It Took Team Effort!

At least 12 organizations, including Mantle, Paraswap, and ZachXBT, are working together to track down the stolen funds.

To speed up the process, Bybit has launched a bounty program, offering a 10% reward for any funds successfully recovered. So far, the company has already paid out $2.2 million in bounties.

Success Stories in Crypto Fund Recovery

This isn’t the first time stolen cryptocurrency has been reclaimed. In 2023, Jump Crypto recovered $140 million from the Wormhole hack. Earlier this year, nearly $2.6 million was retrieved from a Lazarus attack on Deribit and a digital casino with help from the US government.

Lazarus Group’s Alarming Ties to North Korea

Lazarus Group is not just an ordinary cybercriminal organization. A United Nations report states that at least 40% of the funds it steals go directly to North Korea’s weapons of mass destruction program.

Recognizing the danger, the FBI issued a warning late last year about Lazarus’ growing efforts to disrupt the blockchain industry.

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The Bybit hack is yet another reminder of the increasing security threats in the cryptocurrency industry. While most stolen assets remain traceable, the use of mixers and cross-chain swaps makes recovery far more difficult.

Beyond financial losses, the impact of Lazarus’ activities raises serious concerns about global security.

Tracking stolen billions is one thing, but stopping cybercriminals before they strike? That’s the real challenge. And as long as groups like Lazarus exist, the fight is far from over.