Recovering Stolen Assets in Parts
Bybit CEO Ben Zhou has confirmed that $280 million of the $1.4 billion stolen from the exchange has been laundered and is no longer traceable. However, about $1.07 billion remains trackable, allowing investigators to continue their efforts to recover the funds.
Update on Stolen Funds
On March 4, Zhou provided an update on the movement of 500,000 Ether (ETH) stolen in the February hack and the ongoing efforts to stop the bad actors from running away with the loot. "Total hacked funds of USD 1.4bn around 500k ETH, 77% are still traceable, 20% has gone dark, 3% have been frozen," Zhou said.
Laundering and Freezing Stolen Funds
By saying "gone dark," Zhou indicated that 20% of the stolen funds had been successfully mixed, laundered, or sent to platforms that obscure transactions by the North Korean hackers. Investigators have so far helped freeze $42 million, equivalent to 3% of the stolen funds.
Challenges in Recovering Stolen Funds
The hackers converted about $1 billion of the stolen funds — 417,348 ETH — to Bitcoin (BTC) and spread it across 6,954 cryptocurrency wallets with an average holding of 1.71 BTC per wallet. This fragmentation makes further tracking and recovery more difficult.
Recovering Stolen Funds: The Next Steps
According to Zhou, the next one to two weeks will be critical for freezing additional funds before the attackers attempt to cash out through crypto exchanges, over-the-counter (OTC) platforms, and peer-to-peer (P2P) transactions.
Bybit Hackers’ Intentions
According to Zhou, the Bybit hackers primarily used the decentralized exchange THORChain to cash out ETH and BTC. Other platforms like ExCH and OKX Web3 Proxy were also used to move some of the funds.
Support for Recovering Stolen Funds
He also said that $65 million worth of ETH can be recovered but will need support from the OKX Wallet team. Additionally, 11 bounty hunters have been rewarded a total of $2.1 million for their efforts in freezing stolen funds.
Conclusion
The recovery of stolen assets is a complex and challenging process. Bybit and its partners are working tirelessly to freeze and recover the stolen funds. The next one to two weeks will be crucial in determining the success of their efforts.
FAQs
Q: How much of the stolen funds have been laundered and are no longer traceable?
A: $280 million of the $1.4 billion stolen from Bybit has been laundered and is no longer traceable.
Q: How much of the stolen funds remains trackable?
A: About $1.07 billion of the stolen funds remains trackable, allowing investigators to continue their efforts to recover the funds.
Q: What is the current status of the recovery efforts?
A: Investigators have so far helped freeze $42 million, equivalent to 3% of the stolen funds, and are working to freeze additional funds.
Q: What is the next step in the recovery process?
A: The next one to two weeks will be critical for freezing additional funds before the attackers attempt to cash out through crypto exchanges, OTC platforms, and P2P transactions.
Q: How can the OKX Wallet team support the recovery of stolen funds?
A: The OKX Wallet team can provide support in recovering $65 million worth of ETH, which is still available for recovery.
