In an unprecedented response to what is believed to be the largest theft in cryptocurrency history, the ByBit trading platform is enlisting the help of the online community to reclaim losses incurred from a massive hack attributed to North Korea’s infamous Lazarus Group.
Last week, the hackers executed a sophisticated attack that resulted in ByBit losing $1.46 billion (£1.1 billion) in digital assets. In an attempt to neutralize the criminals’ efforts to launder their ill-gotten gains, ByBit has launched a bounty program, appealing to “crypto sleuths” to assist in tracking down and freezing the stolen funds. CEO Ben Zhou invited the public to join the fight against the hackers by creating a dedicated website that details the bounty process.
The website features a live leaderboard showcasing individuals and firms that successfully halt the hackers from cashing out. ByBit is promising a 5% reward from the identified sums to those who manage to convince a financial entity to freeze the assets. The incentivization reflects a broader appeal aimed at leveraging the collective expertise within the cryptocurrency community. Zhou emphasized that the company is committed to fighting back until they bring the perpetrators to justice.
Crypto investigation firm Elliptic has hailed this move as a groundbreaking initiative. Tom Robinson, an analyst at Elliptic, noted that many skilled blockchain investigators will now have the motivation to pursue the theft, potentially enabling the swift recovery of lost funds. Conversely, some industry experts warn that such extensive breaches can tarnish public trust in cryptocurrency, a sector already grappling with volatility and skepticism. Louise Abbott, a professional in crypto fraud at Keystone Law, highlighted the precarious nature of the industry when a substantial heist can occur, signifying a need for scrutiny and better security.
The absence of regulatory bodies in the cryptocurrency space has left ByBit utilizing goodwill from fellow crypto companies to assist in reclaiming the stolen assets. However, not every exchange has responded positively to ByBit’s pleas for cooperation. Notably, the eXch platform has allegedly shunned assistance. According to research from Elliptic, eXch is known for facilitating anonymous transactions, raising concerns that it may inadvertently contribute to ongoing criminal activities.
Thus far, analysis shows that approximately $75 million of the stolen funds from ByBit have flowed through eXch. While the investigation continues, ByBit is determined to extend its bounty efforts to other victims of North Korean cybercriminals, aiming to unify the cryptocurrency community against this pervasive threat. The site even features a logo depicting a knife slicing through a silhouette of North Korean leader Kim Jong Un's hair, underscoring the seriousness of the situation.
Cryptocurrency experts have linked the stolen funds to North Korea's strategy of evading international sanctions and underwriting military developments, yet the isolated nation has not acknowledged any involvement in the Lazarus Group activities. As bounty hunters embark on this digital treasure hunt, the outcomes of their efforts remain to be seen.
