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Bybit Hacker Launders $605M in Ethereum Amid Largest Crypto Heist Ever

Arry Hashemi
Arry Hashemi
Mar. 01, 2025
A hacker linked to North Korea’s Lazarus Group has stolen $1.5 billion in Ethereum from Bybit, marking the largest crypto heist in history. The attackers infiltrated Bybit’s cold wallet system, laundering over $605 million using crypto swaps, mixing services, and cross-chain transfers to evade detection. The FBI and blockchain security firms are tracking the stolen funds, urging exchanges to block suspicious transactions. Bybit assures users that withdrawals remain unaffected, but the hack raises concerns about crypto security, regulatory scrutiny, and market stability, with Bitcoin dropping 5% after the attack.
hackIn a shocking cyberattack that has rattled the cryptocurrency world, hackers stole approximately $1.5 billion worth of Ethereum from Dubai-based exchange Bybit. [Image Source: Shutterstock]

In a shocking cyberattack that has rattled the cryptocurrency world, hackers stole approximately $1.5 billion worth of Ethereum from Dubai-based exchange Bybit on February 21, 2025. This is now the largest crypto theft ever recorded.

How the Hack Happened

The attack targeted Bybit’s Ethereum cold wallet, a supposedly secure offline storage system. During a routine transfer from this cold wallet to a warm wallet for daily transactions, the hackers infiltrated the system.

Investigations reveal that the attackers compromised a developer’s machine linked to Safe, Bybit’s wallet provider, injecting malicious code into the transaction process. As a result, Bybit unknowingly authorized the transfer of 401,000 ETH to addresses controlled by the hackers.

North Korea’s Lazarus Group Identified as the Culprit

Blockchain analysis firms Elliptic and Arkham Intelligence traced the hack to the Lazarus Group, a notorious hacking collective backed by North Korea. The FBI confirmed their involvement, linking the attack to the TraderTraitor malware campaign used by Lazarus to fund North Korea’s weapons programs.

Hackers Launder Over 50% of Stolen Funds

Despite global efforts to track the stolen assets, the hackers have already laundered over $605 million, using sophisticated tactics to evade detection:

  • Crypto Swaps – Stolen ETH was quickly converted into Bitcoin and other cryptocurrencies to make tracking harder.
  • Mixing Services – Funds were obscured through transaction mixers, which blend transactions to erase their origin.
  • Cross-Chain Transfers – The assets were moved across multiple blockchains using bridge protocols to further hide their trail.

Response from Authorities & Industry

The FBI issued a warning to crypto platforms, urging them to block transactions linked to hacker-controlled wallets. A list of wallet addresses connected to the stolen funds was also published.

Bybit has assured users that withdrawals remain operational and that all customer assets are fully backed despite the loss. The exchange is working with law enforcement and blockchain analysts to recover the stolen funds.

Crypto security firms emphasize the need for a unified effort to track and seize the funds before they are fully laundered. Exchanges and blockchain networks are being urged to monitor suspicious transactions linked to the stolen ETH.

The Bigger Picture: Impact on the Crypto Industry

The attack exposes vulnerabilities in developer security, highlighting that the risks extend beyond just user accounts. This incident may prompt governments to tighten cryptocurrency regulations in an effort to prevent future large-scale hacks. In response to the breach, the market experienced significant volatility, with Bitcoin dropping over 5% and hitting a three-month low below $80,000.

What’s Next?

As authorities intensify their investigations, the Bybit hack serves as a wake-up call for the crypto industry. Strengthening security, enhancing regulations, and increasing global cooperation will be crucial to prevent another record-breaking theft.