A major cryptocurrency heist, believed to be the largest in history, has prompted the trading platform ByBit to enlist the public's help in recovering stolen funds amounting to $1.46 billion (£1.1 billion). Hackers affiliated with North Korea's infamous Lazarus Group executed the audacious theft last week, and the criminals are currently attempting to launder the stolen cryptocurrency through sophisticated online methods to obfuscate its origins.
In a bold initiative, ByBit is now offering cash rewards for tips from individuals who can aid in halting the laundering process. The company’s CEO, Ben Zhou, encouraged cryptocurrency enthusiasts to join the fight against Lazarus, sharing a link to a new website designed for this bounty program. The site features a live leaderboard showcasing those who have successfully identified and prevented the cashing out of stolen coins.
The bounty program awards 5% of any frozen funds to the individuals responsible for the tip, alongside a similar reward to the companies that act on these leads. Already, the site reflects significant payouts made to successful crypto sleuths. Mr. Zhou assured the public that a dedicated team will continuously update the site and efforts will persist until Lazarus and other bad actors are apprehended.
Tom Robinson from the crypto investigative firm Elliptic praised the innovation behind ByBit's bounty program, stating that it will motivate talented blockchain investigators to track stolen funds more effectively. However, legal expert Louise Abbott warned that such large-scale hacks diminish trust in the increasingly volatile cryptocurrency landscape, noting that if a breach can occur on such a scale at a major exchange, further incidents are likely.
With no regulatory bodies or centralized authorities overseeing cryptocurrency transactions, ByBit is heavily relying on collaboration with other exchanges to action freezes on the stolen funds. Yet some exchanges have been less cooperative, with eXch, known for facilitating anonymous asset swaps, allegedly refusing to assist in this matter. Elliptic’s analysis indicated that approximately $75 million from the ByBit hack has already been traced to eXch.
The hunt for the stolen funds is emblematic of ongoing struggles between the crypto community and high-stakes cybercrime, with research indicating that Lazarus Group has been responsible for about $6 billion in thefts over recent years. The funds are thought to aid North Korea in circumventing international sanctions and bolstering its military efforts, while the regime has never formally acknowledged involvement in these cyber operations.
