The cryptocurrency landscape is once again rocked by the ongoing illicit activities stemming from the infamous Bybit hack, which led to the theft of $1.4 billion worth of Ether. In a disturbing turn of events, the hackers have resumed laundering efforts, moving another 62,200 Ethereum (ETH) on March 1, amid increasing scrutiny and obstruction attempts from U.S. authorities.
Crypto analyst EmberCN reports that as of early March, approximately 343,000 Ether, or 68.7% of the total stolen amount, has already been transferred to various crypto wallets. This noteworthy percentage reflects a significant speed-up in laundering activities compared to less than two weeks prior, when only 54% had been processed. With 156,500 ETH remaining, analysts anticipate that the hackers could complete their transactions in just a matter of days.
Efforts by the Federal Bureau of Investigation (FBI) to halt these transactions have seen some progress, as the FBI shared 51 Ethereum addresses linked to the hackers. Furthermore, the crypto analytics firm Elliptic has flagged over 11,000 wallet addresses that might be connected to the laundering operations. Despite these attempts to crack down on illicit activities, the hackers have diversified their laundering tactics through the use of decentralized exchanges, cross-chain bridges, and instant swap services which operate without strict Know Your Customer protocols.
The use of cross-chain asset swap protocols, such as THORChain, has been particularly controversial. Developers associated with THORChain are facing backlash due to their involvement in transactions linked to the North Korean hackers widely believed to be behind the operation. In a notable shift, one of THORChain’s developers, known by the alias “Pluto,” has expressed intentions to step away from the project following a vote that reverted crucial measures designed to block transactions associated with the hackers. Meanwhile, THORChain’s founder, John-Paul Thorbjornsen, emphasizes his departure from the protocol and highlights that none of the addresses listed by authorities have interacted with THORChain.
The Bybit hack is currently recorded as the largest exploit within the crypto sector, more than doubling the losses attributed to the $650 million Ronin bridge hack back in March 2022. With ongoing investigations and the looming presence of law enforcement, the future track of the remaining $346 million worth of Ether is uncertain, emphasizing the need for improved security measures in the cryptocurrency space as stakeholders work to differentiate between legitimate operations and illicit activities.
