The FBI has officially linked the recent cyberattack on Dubai-based crypto exchange Bybit to North Korean hackers, urging crypto firms to block transactions linked to the stolen funds.
According to Bybit CEO Ben Zhou, hackers compromised an offline Ethereum wallet, leading to a staggering $1.5 billion loss. Blockchain intelligence firm Arkham Intelligence reports that the stolen funds are already being moved to new wallet addresses for liquidation.
How North Korean Hackers Launder Stolen Crypto
On February 26, the FBI released a statement revealing that North Korean TraderTraitor hackers are using advanced laundering techniques to convert stolen funds into various crypto tokens. These assets are then distributed across thousands of wallets to evade detection.
To counteract this, the FBI has published a list of 51 Ethereum wallet addresses suspected of holding portions of the stolen funds. The agency is calling on the crypto industry—including exchanges, blockchain analytics firms, DeFi platforms, and RPC node operators—to block transactions from these flagged addresses.
Bybit Hack: The Largest Crypto Breach Yet?
The Bybit hack is reportedly the biggest crypto exchange attack of 2024.
Ben Zhou explained that hackers manipulated the exchange’s smart contract logic, granting them full access to a cold Ethereum wallet and enabling them to transfer all funds to an unknown address.
Bybit’s internal forensic investigation found that malicious code was injected into its system, facilitating the breach. However, the exchange clarified that there was no compromise detected within its internal infrastructure.
Crypto Industry on High Alert
This attack underscores the urgent need for enhanced security measures in the crypto space. The FBI is urging Web3 service providers to take proactive steps in blocking stolen funds and strengthening their cybersecurity defenses to prevent similar breaches in the future