Bybit Hack: Lazarus Group Launders $1.4B in ETH via THORChain, Converts to Bitcoin

Bybit, a major cryptocurrency exchange, was the victim of a significant hack on February 21, 2025, resulting in the theft of approximately 500,000 ETH, valued at around $1.4 billion. The North Korean hacking group, Lazarus Group, was identified as the perpetrator after injecting malicious code into SafeWallet, a third-party wallet platform used by Bybit.

The hackers have successfully laundered all of the stolen ETH, a process that took just 10 days. They primarily used THORChain to convert 83% of the stolen ETH, amounting to about $1 billion, into Bitcoin (BTC), which was then distributed across 6,954 wallets. Bybit has restored a 1:1 backing of client assets following the attack.

Bybit CEO Ben Zhou reported that 77% of the stolen funds remain traceable on the blockchain, despite the laundering efforts. However, 20% of the funds, approximately $280 million, have become untraceable, and 3% have been frozen. The exchange has engaged in efforts to freeze the remaining funds, offering bounties to blockchain investigators, including ZachXBT, to aid in the recovery process.

THORChain processed over $5.8 billion in transaction volume and earned approximately $5.5 million in fees from the laundering activities. The platform has faced criticism for facilitating the laundering of the stolen assets.

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