Bybit Hack: Lazarus Group Moves 62,200 ETH – Full Amount Could Be Cleared in 3 Days

In a race against time, the notorious Lazarus Group, linked to North Korea, is swiftly laundering the $1.4 billion stolen from Bybit in the largest crypto hack to date. The group’s recent move of 62,200 ETH on March 1 brings them closer to clearing the full amount within just three days.

• Lazarus Group linked to North Korea
• Bybit hack: $1.4 billion stolen
• 62,200 ETH moved on March 1
• FBI names operation “TraderTraitor”

Background of the Hack

The Bybit hack, which occurred on February 21, 2025, saw the Lazarus Group pilfer an astonishing 499,000 ETH, valued at approximately $1.4 billion. This audacious attack was facilitated by compromising a Safe {Wallet} developer machine, which affected an account operated by Bybit. In response, Bybit has offered up to $140 million in bounties for information leading to the freezing of the stolen funds. As of the latest reports, 12 “hunters” had been awarded around $4.2 million for their efforts.

Laundering Techniques

On March 1, the hackers moved 62,200 ETH, valued at $138 million, leaving them with 156,500 ETH from the original amount stolen. So far, they have laundered around 343,000 ETH, or 68.7% of the total. The Lazarus Group isn’t just dipping their toes in the crypto pool; they’re doing cannonballs into the deep end with sophisticated laundering techniques. They’re using decentralized exchanges, which allow direct peer-to-peer trading without a central authority, cross-chain bridges that facilitate asset transfers between different blockchains, and instant swap services that don’t require Know Your Customer (KYC) checks. Additionally, they employ mixing techniques to obscure the trail of the stolen funds. Blockchain analytics firms like Elliptic and Chainalysis have flagged over 11,000 wallet addresses and are closely monitoring these activities.

FBI’s Response

The FBI was quick to confirm North Korea’s role in this heist, dubbing the operation “TraderTraitor.” In a statement, the FBI announced:

“North Korea was responsible for stealing approximately $1.5 billion in virtual assets from the cryptocurrency exchange Bybit on or about Feb. 21, 2025.”

The FBI has called upon the private sector, including RPC node operators, exchanges, and DeFi services, to rally and help block transactions associated with these cybercriminals. However, despite these efforts, the Lazarus Group seems poised to clear the remaining funds in just three days, leveraging a variety of laundering techniques including converting the assets into Bitcoin, DAI, and other cryptocurrencies.

Implications for the Crypto Industry

The Bybit hack has thrown a spotlight on the vulnerabilities within even the most established crypto exchanges. It’s a glaring failure of security protocols that demands immediate action. The Lazarus Group’s involvement adds a geopolitical twist to the tale, showing that state-sponsored actors are not just dabbling but diving deep into the crypto pool to fund their operations. This incident underscores the need for the crypto community to fortify their defenses and collaborate more closely with law enforcement to protect the integrity of the blockchain ecosystem. Discussions on platforms like Reddit have highlighted the impact of such hacks on the industry’s security.

Critical Analysis and Counterpoints

While the Bybit hack is a stark reminder of the risks in the crypto space, it also presents an opportunity for growth and innovation. The crypto industry must not only respond to these threats but proactively innovate to prevent future exploits. Current security measures, such as regular audits and multi-signature wallets, need to be enhanced with multi-layered defense strategies. At the same time, we must balance the need for decentralization with security. While some may argue that increased regulation could stifle innovation, others believe that a collaborative approach between private and public sectors can enhance blockchain security without compromising the ethos of decentralization.

Key Takeaways and Questions

• What group was responsible for the Bybit hack?

  The Lazarus Group, linked to North Korea, was responsible.

• How much Ethereum was moved on March 1?

  On March 1, the hackers moved 62,200 ETH, valued at $138 million.

• What is the total amount of Ethereum laundered so far?

  Approximately 343,000 ETH, which is 68.7% of the 499,000 ETH stolen.

• What name did the FBI give to the North Korean cyber operation?

  The FBI named the operation “TraderTraitor.”

• What techniques are the hackers using to launder the stolen funds?

  The hackers are using mixing techniques, decentralized exchanges, cross-chain bridges, and instant swap services without KYC requirements.

• How is the FBI responding to the hack?

  The FBI confirmed North Korea’s involvement, named the operation “TraderTraitor,” and called for assistance from the private sector to block transactions linked to the hackers.

• How long is it projected to take for the hackers to clear the remaining funds?

  It is projected that the remaining funds will be cleared within the next three days.

As the Lazarus Group races to launder the remaining funds, the crypto community must not only respond but proactively innovate to prevent future exploits. The Lazarus Group’s audacity is not just a wake-up call; it’s a blaring alarm for the crypto industry to bolster its defenses. The battle for the future of decentralized finance is far from over, and it’s time for all hands on deck to secure the blockchain ecosystem. For more detailed information on the hack and its consequences, you can refer to this report and FBI’s official statement.