Bybit Hack: Majority of Stolen Funds Remain Traceable Amid Ongoing Recovery Efforts

In a significant security breach, cryptocurrency exchange Bybit suffered a theft of approximately $1.4 billion in digital assets. Despite the magnitude of the hack, Bybit’s CEO, Ben Zhou, reported that over 77% of the stolen funds are still traceable on the blockchain, offering a glimmer of hope for recovery efforts.

The hackers exploited privacy-focused platforms like THORChain to obfuscate the movement of the stolen assets. Specifically, around 417,348 ether (ETH), valued at approximately $1 billion, remain traceable after being routed through THORChain. However, about 20% of the stolen funds, roughly 79,655 ETH (equivalent to $200 million), have become untraceable after passing through ExCH.

In their laundering attempts, the perpetrators converted approximately 83% of the stolen ETH—totaling 361,255 ETH or $900 million—into Bitcoin (BTC). These funds were distributed across 6,954 wallets, each holding an average of 1.71 BTC. This tactic complicates tracking efforts but does not render them impossible, as blockchain analysis tools continue to monitor these addresses.

Bybit is actively collaborating with global exchanges, over-the-counter (OTC) platforms, and peer-to-peer (P2P) networks to freeze and recover the stolen assets. The upcoming weeks are deemed critical for these efforts, as the hackers may attempt to liquidate the assets. Bybit’s proactive approach underscores its commitment to safeguarding user assets and maintaining trust within the cryptocurrency community.