ByBit has launched a crowdsourced bounty program to help recover nearly $1.5 billion in cryptocurrency stolen by the Lazarus Group, a notorious North Korean hacking organization. The initiative has already garnered interest, despite concerns about the overall security of the crypto industry.
Bounty Hunters Mobilize to Trace $1.5 Billion Stolen in Crypto Heist
Bounty Hunters Mobilize to Trace $1.5 Billion Stolen in Crypto Heist
ByBit engages crypto sleuths in a groundbreaking initiative to recover funds stolen by hackers, as North Korean Lazarus Group remains in the spotlight.
A significant cryptocurrency theft has prompted ByBit, a leading trading platform, to leverage the resources of the online community in a bid to reclaim its nearly $1.5 billion loss. It is considered one of the largest thefts in crypto history, as hackers connected to North Korea's infamous Lazarus Group executed the heist last week. These criminals have begun cashing out the stolen funds, which ByBit is now urgently attempting to track and freeze through a novel bounty-hunting initiative.
ByBit's CEO, Ben Zhou, announced the launch of their new website, inviting individuals and companies to join the fight against the Lazarus Group, emphasizing that "together we can crack down on these bad actors." The platform offers a 5% reward to anyone who successfully identifies the stolen assets and persuades a crypto exchange to halt the funds. A leader board displays real-time contributions from successful sleuths.
Cryptocurrency’s unique public wallet system allows potential recovery of the stolen funds, enabling researchers to trace the laundered money as it is sectioned into smaller pieces and funneled through various channels. A substantial amount is already being allocated on the new website to contributors. The funds have garnered attention worldwide, with blockchain investigators more motivated than ever to track the illicit money.
Despite this proactive measure, experts like Louise Abbott from Keystone Law caution that such a significant breach could diminish trust in the already precarious cryptocurrency industry. She highlighted the necessary improvements needed in security and oversight, stating, “If such a hack can occur on this scale in the world's second largest exchange, it can certainly happen again."
With the inherent lack of central governance in cryptocurrency transactions, ByBit finds itself reliant on the altruism of other crypto-exchanges to assist in their recovery efforts. Unfortunately, not everyone is willing to cooperate, as indicated by the exchange eXch, which has been accused of facilitating anonymous trades for ill-gotten assets and has reportedly allowed $75 million from the ByBit hack to flow through its platform without any action taken.
ByBit plans to invite other victims of the Lazarus Group to utilize their new bounty system, which has a striking logo featuring a knife plunging through the hair of North Korean leader Kim Jong Un. Investigators continue to link the Lazarus Group to various crypto thefts, compellingly arguing that North Korea utilizes these funds to evade international sanctions and enhance its military capabilities. Notably, North Korea has not acknowledged any involvement in the Lazarus Group.
