Hackers linked to North Korea are one step closer to laundering approximately 499,000 ETH, which is equivalent to around $1.5 billion. This amount was illegally withdrawn from the Bybit platform and has already had around 70% of its total moved through multiple platforms and methods, including intermediary wallets and decentralized exchanges, making it significantly more difficult for investigators to track.
As the laundering scheme moves forward rapidly, the issuer of the USDC stablecoin, Circle, has come under fire for its slow response and freezing of funds linked to the hacks. ZachXBT, a well-known blockchain detective, criticized Circle for taking more than 24 hours to initiate the freezing process, which was considered enough time for the criminals to move the assets out of the hands of authorities.
Circle CEO Jeremy Allaire defended the company’s policy, arguing that any action is taken only after a direct request from law enforcement. He stated that hasty interventions without legal backing could harm the market and its users. Critics, including security expert Taylor Monahan, have argued for a more agile approach by Circle, contending that waiting for legal approvals gives criminals a crucial advantage in the success of their money laundering schemes.
In an attempt to recover the stolen funds, the FBI identified the group responsible for the attack as TraderTraitor, linked to North Korea. Bybit, in turn, started a rewards program, offering a total of $140 million to those who assist in locating and freezing the assets. So far, 16 collaborators have been compensated, totaling $4.2 million in rewards.
The rapid movement of stolen funds remains a challenge for authorities and underscores the urgent need for faster and more effective responses to cryptocurrency theft situations, highlighting the difficulties faced by the industry in managing and preventing fraud and hacking incidents.