A hacker who stole over $1.4 billion from the crypto exchange Bybit has already laundered more than $605 million worth of Ether (ETH). This represents over 54% of the stolen funds.
Bybit, a centralized cryptocurrency exchange, suffered a massive hack on Feb. 21. The attackers stole over $1.4 billion in various cryptocurrencies, making it the biggest hack in crypto history. Blockchain analytics firms, including Arkham Intelligence, identified North Korea’s Lazarus Group as the likely culprit.
Stolen Funds Moved Through THORChain
The hackers used THORChain, a cross-chain swap protocol, to move the stolen funds. This platform allows users to exchange assets across different blockchains while maintaining privacy.
According to Lookonchain, a blockchain intelligence firm, as of Feb. 28, the hacker had laundered 270,000 ETH ($605 million). They still hold 229,395 ETH ($514 million).
the hacker has already laundered over $605 million worth of Ether (ETH) within a week. Source: LookOnChain on XAfter the hack, THORChain’s transaction volume surged to over $1 billion, raising concerns that it was being used to launder illicit funds. Some in the crypto industry criticized THORChain for enabling hackers to move stolen funds without being detected.
In response, THORChain validators debated whether to block transactions linked to North Korean hackers. However, a vote to implement this restriction was reversed, leading to controversy within the community.
THORChain Developer Resigns
Following the reversal, a core THORChain developer known as “Pluto” announced their resignation on Feb. 27.
In a post on X (formerly Twitter), Pluto announced:
“Effectively immediately, I will no longer be contributing to THORChain.”
THORChain’s core developer “Pluto” announced his resignation on XPluto said they would assist with the transition before fully stepping away from the project.
Meanwhile, THORChain validator “TCB” revealed that they were one of three validators who voted to stop Ether trading on THORChain to prevent the Lazarus Group from moving stolen funds.
TCB later warned that they would also quit if THORChain failed to take action against illicit transactions.
FBI and US Authorities Step In
The FBI urged crypto validators and exchanges to block the Lazarus Group and confirmed that North Korea was behind the Bybit hack.
Meanwhile, THORChain’s founder, John-Paul Thorbjornsen, distanced himself from the situation. He stated that none of the wallet addresses sanctioned by the US Treasury’s Office of Foreign Assets Control (OFAC) had interacted with THORChain. He added that the hacker was moving funds too quickly for screening services to stop them.
The post Bybit Hacker Launders $605M in Stolen ETH, THORChain Faces Backlash appeared first on Coinchapter.
%%featured_image%%
