ByBit Hack Update: Tracing the $1.4 Billion Stolen Crypto Funds

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Two months after the biggest crypto hack in history, a fresh update from Bybit CEO Ben Zhou has brought a ray of hope. Out of the $1.4 billion in stolen ETH, 68.57% of the funds remain traceable, while 3.84% have been frozen. However, 27.59% have gone dark—likely laundered through mixers and bridges.

Bybit Hack: What Happened To Stolen Crypto?

On February 21, 2025, North Korea’s Lazarus Group exploited a free storage software tool used by Bybit, leading to the theft of 500,000 ETH. It marked the largest-ever crypto heist.

Movement of the Funds

After the hack, most of the stolen ETH was converted into Bitcoin via Thorchain:

432,748 ETH (~$1.21B) swapped into BTC.

342,975 ETH (converted into 10,003 BTC) distributed across 35,772 wallets.

944 BTC (~$90M) passed through Wasabi Mixer.

Some funds also flowed through CryptoMixer, Tornado Cash, Railgun, and bridging services like LiFi, Stargate, and SunSwap.

Currently, 5,991 ETH (~$16.7M) is still sitting on Ethereum, spread across 12,490 wallets.

Bybit’s Response: Lazarus Bounty Program

To track stolen assets, Bybit launched lazarusbounty.com, calling on blockchain analysts and bounty hunters. So far, 5,443 reports have been submitted, but only 70 were deemed valid. The exchange urges more experts to join the investigation.

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Crypto Hacks on the Rise

According to DeFiLlama, over $11.25 billion has been hacked from the crypto sector to date. In February 2025 alone, losses hit $1.464 billion, including the Bybit attack. April has already seen at least $12.5 million in hacks, including:

ZKsync ($5M)

KiloEx ($7.5M)

UPCX (undisclosed)

Bottom Line

The Bybit hack update reveals a sophisticated laundering strategy by Lazarus Group and highlights the growing security threats facing the crypto space. As the industry tightens its guard, Bybit’s ongoing bounty program could prove key in recovering the stolen funds.