The recent Bybit hack, which resulted in the theft of $1.4 billion in Ethereum, has seen a significant increase in the amount of stolen funds that can no longer be traced. Bybit CEO Ben Zhou revealed that around $400 million, or 27.6% of the stolen funds, have slipped out of reach. This represents a sharp increase from March, when only 7.59% of the missing assets were untraceable. Crypto mixers and decentralized cross-chain services have played a significant role in fueling the disappearance of these funds, as attackers increasingly rely on them to conceal their activities.
One of the services used to launder the stolen funds is the Wasabi Mixer, known for its anonymity features. Over $90 million worth of Bitcoin was laundered using this service. Additionally, Thorchain, a decentralized cross-chain platform, facilitated the swap of 531 BTC into Ethereum. The stolen assets were then funneled through other privacy-focused platforms such as CryptoMixer, Tornado Cash, and Railgun before being moved across various crypto platforms and ultimately converted into fiat via peer-to-peer and over-the-counter exchanges.
Despite the growing portion of untraceable funds, Bybit maintains that the majority of the stolen assets can still be tracked on-chain. Approximately 68.57% of the stolen Ethereum remains traceable, with only 3.84% of the funds frozen. According to Zhou, roughly 343,000 ETH, valued at over $960 million, have been converted into about 10,000 BTC and spread across nearly 36,000 wallets. An additional 1.2% of the stolen ETH remains in wallets across more than 12,000 addresses. Bybit is urging the crypto community to cooperate with the firm in tracing the stolen funds, welcoming more reports and assistance from bounty hunters.
In response to the stolen funds being dumped through over-the-counter channels, blockchain security firm Bitrace has confirmed that its customers in multiple countries and regions have reported relevant cases. Despite the challenges posed by the use of crypto mixers and other platforms to conceal the stolen assets, Bybit has received over 5,400 bounty submissions from on-chain sleuths within a span of two months. Of these submissions, 70 have been verified, and 12 contributors have been rewarded a total of $2.3 million. By encouraging the community to contribute to the tracing efforts, Bybit hopes to recover as much of the stolen funds as possible.
The Bybit hack serves as a stark reminder of the vulnerabilities within the crypto ecosystem and the importance of robust security measures to protect investors and funds. As the crypto industry continues to evolve, exchanges and platforms must remain vigilant in safeguarding assets and responding swiftly to security breaches. Bybit’s efforts to trace and recover the stolen funds demonstrate a commitment to transparency and accountability, as well as a willingness to collaborate with the wider crypto community to address the impact of the hack.
