Stolen Crypto Assets: 20% Remains Undisclosed or Hidden According to Bybit CEO
Catchin' the Criminals: A Deep Dive into the Bybit Hack
Bybit's Painful LossThe Bybit hack, striking on February 21, 2025, left a $1.5 billion hole in the crypto market as over 500,000 ETH and staked Ether (STETH) tokens were stolen[1][4][5]. The break-in breached one of Bybit's cold wallets, allowing the cyber crooks to mess with the signing interface and redirect funds to a shady address[4][5].
Following the Money
- Out of the looted hoard, approximately 83% was transformed into Bitcoin, stashed away across 6,954 wallets, each averaging 1.71 BTC[7]. This chunk is still up for grabs for tracers.
- The current and upcoming weeks are critical for catching the culprits, as the coins will start to be laundered on exchanges, OTC, and P2P platforms[6].
- 72% of the losses could be traced through a cross-chain protocol monitored by Bybit[5].
- A decent 16% headed to DEX called ExCH[5].
- Around 8% snuck through OKX Web3 Wallet[5]. A fraction of this amount can be tracked, but info on the rest is as elusive as the thieves themselves[5].
The Bounty Hunt
- Bybit's CEO, Zhou, has praised the efforts of 11 participants in the bounty program, with the Mantle, Paraswap teams, and ZacXBT earning $2.18 million in USDT[3].
- The FBI has implicated the North Korean group TraderTraitor (or Lazarus Group, APT38, BlueNoroff, and Stardust Chollima) in the Bybit heist[5].
The Call to Arms
Crypto experts Adam Back and Sygnia analysts have chipped in their two cents. Back pointed the finger at the flawed EVM design, while Sygnia analysts flagged a vulnerability in the Safe infrastructure[2][3].
In response, Bybit has strengthened its security, implementing multiple security audits, enhancing wallet protection, and securing ISO/IEC 27001 certification for its information security risk management[1].
The race is on to recover the stolen funds and bring those responsible to justice. The crypto world is holding its breath, hoping for a swift resolution to this painful chapter in Bybit's history.
[1] CoinDesk (2025). Bybit Says Hackers Stole Over $1.5 Billion in Cryptocurrency. [https://www.coindesk.com/business/2025/02/22/bybit-reveals-multi-sig-wallet-hack-losing-cryptocurrency-worth-over-1-5b/][2] Decrypt (2025). Binance’s CZ Hits Back at Unravelling Mystery Behind Bybit’s $1.5B Hack. [https://decrypt.co/89649/binances-cz-hits-back-unravelling-mystery-bybit-1-5b-hack][3] CoinTelegraph (2025). Bybit Bounty Program Identifies Participants Assisting in Fund Recovery Efforts. [https://cointelegraph.com/news/bybit-bounty-program-identifies-participants-assisting-in-fund-recovery-efforts][4] The Block (2025). Analysis: How Bybit Lost Millions in a Multisig Wallet Hack. [https://www.theblockcrypto.com/linked/103442/analysis-how-bybit-lost-millions-multisig-wallet-hack-explained][5] Forbes (2025). North Korean Hacker Group TraderTraitor Implicated In Bybit Crypto Hack. [https://www.forbes.com/sites/jasonbrett/2025/02/22/north-korean-hacker-group-tradertraitor-implicated-in-bybit-crypto-hack/?sh=790e7382e0cc][6] Coindesk (2025). Bybit CEO Discusses Strategies for Recovering Stolen Funds. [https://www.coindesk.com/business/2025/03/01/bybit-ceo-discusses-strategies-for-recovering-stolen-funds/][7] BitMEX Research (2025). Analysis: Bybit’s $1.4bn Hack. [https://research.bitmex.com/bybits-1-4bn-hack/]
- The stolen Ethereum from the Bybit hack was converted into Bitcoin, making it a significant issue within the finance and technology industry, as well as general news, due to the potential for criminal activities.
- As the stolen Bitcoins are expected to be laundered on various exchanges, OTC, and P2P platforms, the industry, including finance and crime-and-justice sectors, must closely monitor these platforms to track and recover the stolen funds.
- The progress in identifying the perpetrators of the Bybit hack, such as the North Korean group TraderTraitor, demonstrates the need for increased security measures within the crypto industry to protect against such cyber crimes.
