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North Korean Hackers Steal $1.46B in Ethereum from Bybit
North Korean Hackers Steal $1.46B in Ethereum from Bybit
Julie J February 22, 2025
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Ethereum
Bybit, one of the leading cryptocurrency exchanges, has fallen victim to a massive hack, resulting in the theft of $1.46 billion worth of Ethereum and other ERC-20 tokens. This cyberattack, which targeted Bybit’s cold wallet, has been linked to the notorious North Korean hacking group, Lazarus. Blockchain security experts have shed light on how the hackers may now attempt to launder the stolen funds, raising concerns about the growing threat posed by state-sponsored cybercriminals.

The Hack and Its Fallout

Bybit CEO and co-founder Ben Zhou confirmed the attack, revealing that the hackers transferred the stolen funds from the exchange’s cold wallet to a hot wallet. The compromised tokens included Lido Staked ETH (stETH), Mantle Staked ETH (mETH), and various ERC-20 tokens. The attack was executed using a sophisticated strategy in which the hackers disguised their malicious actions within a legitimate transaction. The manipulation targeted the smart contract logic of the wallet, enabling the hackers to bypass security measures unnoticed.

In response to the hack, Bybit has sought help from blockchain security experts to track down the stolen assets. Arkham Intelligence, a prominent blockchain analytics firm, offered a substantial $32,000 reward for information that could identify the perpetrators behind the attack. The crypto community’s suspicions were quickly confirmed by renowned blockchain sleuth ZachXBT, who traced the exploit back to the Lazarus Group, a North Korean cybercrime syndicate with a long history of crypto heists.

ZachXBT’s Forensic Investigation

ZachXBT’s detailed analysis of the attack provided solid evidence that the Lazarus Group was responsible for the Bybit hack. Using forensic graphs, test transactions, and timing analysis, the investigator showed that the stolen funds were funneled through connected wallets used by the group. Arkham Intelligence corroborated ZachXBT’s findings, submitting the proof to Bybit for further investigation.

The Lazarus Group has previously been linked to several high-profile cryptocurrency hacks, including an attack on India’s WazirX exchange, which resulted in the theft of $230 million worth of crypto assets. This latest heist further underscores the group’s growing influence in the world of cybercrime and its ability to target large exchanges.

How Lazarus Group Will Likely Launder the Stolen Funds

Once the stolen ERC-20 tokens are in their possession, the Lazarus Group is expected to follow a well-documented process to convert the stolen funds into cash. According to Eric Wall, a board member of the Starknet Foundation, the group’s preferred method of laundering stolen cryptocurrencies involves converting all ERC-20 tokens, like mETH and stETH, into Ethereum (ETH). They would then swap the ETH for Bitcoin, which is harder to trace, before selling the Bitcoin for fiat currency—most commonly the Chinese Renminbi (CNY).

This laundering process can take years, as the group typically uses sophisticated methods to obscure the movement of funds. The stolen money is ultimately funneled into North Korea’s controversial nuclear program, further demonstrating the severe geopolitical implications of such cyberattacks. The funds could potentially provide substantial financial backing for North Korea’s weapons development efforts, fueling global security concerns.

Ongoing Concerns and Future Implications

The attack on Bybit serves as a reminder of the vulnerabilities that remain in the cryptocurrency space. While blockchain technology offers a high level of transparency and security, the ongoing threat of state-sponsored hacking groups like Lazarus highlights the need for stronger defenses and improved regulatory measures.

As the crypto industry continues to grow, exchanges and users alike must remain vigilant against these increasingly sophisticated threats. The Lazarus Group’s involvement in this attack is a wake-up call to the broader crypto community about the intersection of cybercrime and global geopolitics.