Lazarus Group Launders $1.5B in Bybit Hack via THORChain

Coin WorldTuesday, Mar 4, 2025 7:42 pm ET

1min read

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The Lazarus Group, a notorious cybercrime organization, has successfully laundered all the stolen funds from the recent Bybit hack through the use of THORChain's decentralized exchange (DEX). The group converted a significant amount of Ethereum (ETH) tokens into Bitcoin (BTC), sparking criticism from the crypto community.

Arkham Intelligence, a blockchain analytics platform, confirmed that the Lazarus Group was responsible for the Bybit hack and that all the stolen funds have been laundered. The firm reported that the group transferred around 500,000 ETH to native BTC, with THORChain processing over $5.5 billion in volume since the hack on February 21.

The Bybit hack was one of the largest crimes in the history of cryptocurrency, with the Lazarus Group stealing approximately $1.5 billion in ETH tokens. Just two days ago, analysts confirmed that the group had already laundered 70% of the stolen funds. However, the group moved quickly, and by yesterday, Bybit CEO Ben Zhou noted that 83% of the funds had been converted to BTC, with the entire supply now processed.

Bybit CEO Zhou also revealed that the Lazarus Group laundered 72% of Bybit's assets through THORChain, with the majority of transactions converting ETH to BTC occurring on this exchange. The sheer size of these transactions caused THORChain's 24-hour trading volume to spike, surpassing several much larger networks.

Some users have begun blaming THORChain for the debacle, arguing that the exchange should have taken action to prevent the Lazarus Group from laundering Bybit's funds. However, THORChain defenders have pointed out that the platform is open-source and decentralized, not a law enforcement agency.

The whole affair has raised questions about the structural vulnerabilities of decentralized institutions in facilitating massive financial crimes. If the Lazarus Group can successfully use these platforms to launder billions of dollars, it raises concerns about the appeal of decentralized finance as an economic model.

On the other hand, criticisms of THORChain have also been met with skepticism. While the platform's RUNE token briefly spiked due to high trade volumes, the gains have since disappeared. The firm's involvement with Bybit laundering is likely to follow its reputation for years, and

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