Bybit’s Ben Zhou Reports 77% Of Stolen ETH Traceable, 20% Transferred To Black Market
In Brief
Ben Zhou released a detailed summary on the status of the hacked funds, offering insights into how the stolen assets have been tracked and managed.
CEO of cryptocurrency exchange Bybit, Ben Zhou, released a detailed summary regarding the status of hacked funds, providing insight into how the stolen assets have been tracked and managed.
According to the report, a total of $1.4 billion worth of cryptocurrency, including approximately 500,000 ETH, was compromised. Of these funds, 77% remain traceable, 20% have disappeared from tracking, and 3% have been frozen.
The analysis reveals that 83% of the stolen Ethereum—equivalent to around 417,348 ETH or approximately $1 billion—has been converted into Bitcoin across 6,954 wallets, with each holding an average of 1.71 BTC. Zhou emphasized that the current and upcoming week is crucial for freezing the funds, as they are expected to start moving through exchanges, OTC platforms, and peer-to-peer networks.
The report highlights that the hacker primarily used THORChain, a decentralized cross-chain liquidity protocol, to convert ETH into BTC. Approximately 361,255 ETH—valued at around $900 million, or 72% of the total stolen ETH—was laundered through THORChain. Data from DeFiLlama indicates that THORChain recorded a weekly trading volume of $4.67 billion, with a portion of this surge potentially linked to the activities of the Bybit exploiters.
Additionally, 79,655 ETH—roughly 16% of the stolen funds—was funneled through an automatic cryptocurrency exchange known as ExCH, though further updates are awaited. Another 40,233 ETH, valued at approximately $100 million (8% of the total), was processed via OKX Web3 proxy services. Out of this amount, 16,680 ETH remains traceable, while 23,553 ETH—approximately $65 million (5%)—is unaccounted for, requiring additional information from OKX Web3 Wallet.
Ben Zhou also provided an update on Bybit’s bounty program, which enables users to link their wallets and participate as “bounty hunters.” The program includes a live ranking system that tracks both positive and negative actors and their response times in handling transactions linked to the sanctioned Lazarus Group. Bybit is offering a 5% bounty for any funds successfully frozen by exchanges, mixers, or other intermediaries, with payments issued immediately upon freezing.
The report further disclosed that 11 different entities assisted in freezing the compromised funds, with the top contributors being Mantle, Paraswap, and blockchain investigator ZachXBT. So far, Bybit has paid out $2,178,797 USDT to 11 bounty hunters as part of this initiative.
Bybit Suffers Record $1.5B Hack, Implements Recovery Measures To Restore Operations
On February 21st, Bybit experienced a security breach, marking the largest hack ever recorded on a centralized exchange. The attack was reportedly carried out through a targeted malware exploit linked to the Lazarus Group, resulting in the loss of over $1.5 billion worth of Ethereum.
Bybit’s CEO, Ben Zhou, swiftly acknowledged the breach, providing an initial overview of the incident shortly after it occurred. In response, the exchange took immediate action by publishing a detailed post-mortem report, securing a bridge loan to protect customer assets and facilitate withdrawals, and launching a 10% bounty program to incentivize the recovery of stolen funds.
Just days later, Bybit announced that it had addressed the shortfall in its Ethereum reserves. Additionally, the exchange reported that withdrawal activity had stabilized, indicating a return to normal operations.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
