ByBit Offers Bounties to Catch $1.5 Billion Stolen by North Korean Hackers

After the largest theft in crypto history, ByBit is crowdsourcing bounty hunters to help recover $1.46 billion stolen by North Korean hackers. The platform urges crypto enthusiasts to assist in tracing and freezing the stolen assets.

In what may be recorded as the largest theft in cryptocurrency history, the trading platform ByBit was targeted by hackers tied to North Korea's infamous Lazarus Group, resulting in a loss of $1.46 billion (£1.1 billion). In response to this unprecedented crime, ByBit is now actively seeking the aid of the online community by implementing a crowdsourced bounty program designed to recoup some of their substantial losses.

The cybercriminals are currently engaged in a sophisticated money laundering operation to quickly cash out the stolen cryptocurrency. ByBit's CEO, Ben Zhou, called upon the public to assist in this pursuit, stating, "Join us on war against Lazarus," and promoting a dedicated website that outlines their bounty offers.

Because cryptocurrencies are managed in public wallets, the transaction trails are accessible, allowing for the possibility of tracking the funds. The newly launched website provides real-time updates and a leaderboard that recognizes companies and individuals who have successfully identified portions of the stolen assets. Individuals who help secure the funds can earn a bounty of 5% of the identified amount, along with an additional 5% offered to firms that take appropriate action to freeze the assets.

Mr. Zhou assured stakeholders that their dedicated team would consistently monitor and update the website, vowing to persist until they apprehend the perpetrators or any affiliated malicious groups. Crypto investigation firm Elliptic has lauded ByBit's bounty initiative as a significant improvement, noting that talented blockchain investigators will now have incentives to recover the misappropriated funds.

However, Louise Abbott, a crypto fraud partner at Keystone Law, expressed concerns that such a significant breach could erode trust in an already volatile industry, warning, "If such a hack can occur on this scale in the world's second largest exchange, it can certainly happen again."

With no central banks or regulatory bodies overseeing cryptocurrency transactions, ByBit finds itself dependent on the cooperation of other crypto exchanges to recover its losses. Unfortunately, not all exchanges have been willing to assist, leading to a list of non-cooperative firms maintained on ByBit's website. One notable exchange, eXch, is reportedly refusing to engage, having been linked to anonymous transactions that have laundered substantial amounts derived from various criminal activities, including the recent North Korean hack.

With $75 million traced to eXch from the ByBit breach, investigators believe this platform has played a significant role in laundering illicit funds. While ByBit prepares to open its bounty initiative to other victims of the Lazarus Group to collaborate in recovery efforts, the challenge remains daunting as crypto-related crimes continue to impact the industry at large, potentially funding illicit state activities.