A hacking group believed to be linked to the North Korean regime has successfully laundered at least $300 million (£232 million) from their staggering $1.5 billion cryptocurrency heist, making the stolen funds virtually unrecoverable.
The cybercriminals, known as the Lazarus Group, orchestrated the attack on the cryptocurrency exchange ByBit two weeks ago, seizing an enormous sum in digital assets.
Since the breach, cybersecurity experts have been engaged in a relentless battle to track and block the illicit funds before they can be converted into usable currency.
Around-the-Clock Laundering Operation
Experts warn that Lazarus Group operates almost non-stop, likely funnelling the stolen money into North Korea’s military programmes.
“Every minute counts for the hackers as they work to obfuscate the money trail,” says Dr Tom Robinson, co-founder of cryptocurrency forensics firm Elliptic.
“They are highly sophisticated and likely have an entire team dedicated to laundering these funds using advanced automation and years of experience.”
Analysis by Elliptic aligns with ByBit’s latest findings, which reveal that 20% of the stolen funds have already ‘gone dark’, meaning they are unlikely to be recovered.
The Hack That Shook ByBit
On 21 February, Lazarus Group exploited a vulnerability in one of ByBit’s third-party providers, secretly altering a digital wallet address that was set to receive 401,000 Ethereum coins. ByBit mistakenly transferred the assets to the hackers instead of its own secure wallet.
Despite the staggering loss, ByBit CEO Ben Zhou assured customers that their funds remain safe, as the company has replenished the missing assets using loans from investors. ByBit has since launched an aggressive counter-offensive, calling it a “war on Lazarus”.
The Race to Track and Freeze Stolen Crypto
ByBit’s Lazarus Bounty Programme is offering financial rewards to individuals who help trace and freeze the stolen funds. Since all cryptocurrency transactions are recorded on public blockchains, it is possible to monitor the movement of the illicit assets.
If the hackers attempt to cash out via mainstream cryptocurrency platforms, companies can freeze the assets if they detect links to criminal activity. So far, 20 individuals have received over $4 million in rewards for helping to identify and block $40 million worth of stolen crypto.
