Bybit CEO: 68.57% of $1.4B Hacked Assets Traceable

Bybit CEO Ben Zhou has provided an update on the whereabouts of the $1.4 billion worth of hacked digital assets, which includes nearly 500,000 ETH. The stolen funds have been laundered through a complex network of mixers, cross-chain protocols, and decentralized exchanges. According to Zhou's findings, approximately 68.57% of the stolen funds remain traceable, while 27.59% have gone dark, and 3.84% have been frozen. The untraceable funds primarily flowed into mixers and then through bridges to peer-to-peer (P2P) and over-the-counter (OTC) platforms.

Zhou's update highlights the growing difficulty in tracking illicit funds, as an increasing share vanishes using fraud tools before conversion to fiat via P2P and OTC channels. His report details how these funds are transferred, fragmented, and obscured. The use of mixers such as Wasabi, CryptoMixer, Tornado Cash, and Railgun has made it increasingly challenging to trace the funds. These assets then moved through cross-chain platforms like Thorchain, LiFi, and Stargate, enabling token swaps and blockchain jumps. Ultimately, the funds were offloaded using peer-to-peer or OTC services.

Of the approximately 513,000 ETH involved, about 84.45% ($1.21 billion) moved off Ethereum. Roughly 343,000 ETH (67.25%) was converted into approximately 10,000 BTC and spread across approximately 36,000 wallets, averaging 0.28 BTC each. Only approximately 6,000 ETH (1.17%) remains on Ethereum across approximately 12,000 wallets. On the Bitcoin side, an estimated 944 BTC ($90.6 million) entered the Wasabi Mixer. Interestingly, some flowed back: 531 BTC (equal to approximately 18,000 ETH or 3.57% of the total) bridged back to Ethereum via Thorchain, signaling ongoing obfuscation tactics.

Zhou also noted the Lazarus Bounty program received 5,443 reports in the past 60 days, confirming 70 as valid. The program needs more bounty hunters skilled in decoding mixer transactions. This update underscores the need for enhanced tracking mechanisms and increased vigilance in the cryptocurrency space to combat the growing sophistication of hackers and money launderers.