The hackers behind the recent Bybit exchange breach have escalated their money laundering activities, moving a significant amount of stolen Ether (ETH). This latest development highlights the ongoing challenges in tracking and stopping illicit cryptocurrency transactions.
Continued Movement of Stolen Funds
The latest reports indicate that the hackers transferred over 62,000 ETH, valued at approximately $138 million, in a single transaction. This brings the total laundered amount to over 340,000 ETH, which represents a substantial portion of the funds stolen during the initial breach. With over 150,000 ETH still in their control, it is expected that further laundering attempts will continue in the coming days.
Techniques Used to Obfuscate Transactions
The hackers have been employing advanced methods to conceal the origin of their stolen funds. By leveraging decentralized exchanges, cross-chain bridges, and instant swap services that do not require identity verification, they have successfully converted portions of the stolen ETH into other cryptocurrencies, making it increasingly difficult to trace.
These techniques allow the stolen funds to move across different blockchain networks, limiting the ability of authorities and forensic firms to track them efficiently. The increased use of decentralized finance (DeFi) platforms for money laundering presents an ongoing challenge for security experts.
THORChain’s Role in Fund Movement
One of the platforms reportedly used in these laundering efforts is THORChain, a decentralized protocol that facilitates cross-chain swaps. Internal disputes within the platform’s governance recently surfaced when a decision to block transactions linked to the hackers was reversed, causing a key developer to resign in protest.
This situation has fueled further debate on whether decentralized platforms should take active measures to prevent the movement of stolen funds or remain neutral in blockchain transactions.
Law Enforcement and Security Measures
Authorities have been monitoring the hacker’s wallets and issuing warnings to cryptocurrency exchanges and blockchain networks to blacklist certain addresses. Efforts are being made to track and freeze the stolen assets, but the decentralized nature of these transactions makes recovery difficult.
This incident serves as another reminder of the risks associated with cryptocurrency exchanges and the growing need for stronger security measures. With blockchain technology continuing to evolve, the industry must find a balance between decentralization and regulatory oversight to mitigate future threats.
