Authorities are tracking $1.4 billion in stolen cryptocurrency, with 77% of the funds still traceable. Bybit CEO Ben Zhou confirmed that efforts are underway to freeze assets before they become untraceable, as only 3% of the stolen funds have been successfully frozen.
According to Zhou’s latest update on X, hackers are attempting to launder the stolen funds through exchanges, over-the-counter (OTC) markets, and peer-to-peer (P2P) networks. Investigators are working with blockchain analytics firms to intercept these transactions before they clear at major platforms. This week is seen as a critical period for asset recovery as the hackers’ movement of funds intensifies.
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Hackers Move $1 Billion in Stolen Crypto to Bitcoin
A major portion of the stolen cryptocurrency has already been converted into Bitcoin. Zhou reported that 83% of the stolen funds—equivalent to 417,348 ETH worth around $1 billion—have been transferred into Bitcoin using 6,954 wallets, each holding an average of 1.71 BTC.
Hackers have primarily used ThorChain to facilitate these transactions, allowing them to bypass traditional tracking systems. A total of 361,255 ETH, worth approximately $900 million, was swapped through ThorChain. While investigators have traced these transactions, they are racing against time to freeze the assets before they are withdrawn from exchanges.
Laundering Efforts Through ExCH and OKX Web3 Proxy
Despite ongoing tracking, 20% of the stolen funds have already gone dark, making recovery more complex. Zhou revealed that 79,655 ETH, or about $172 million, was processed through ExCH, which remains under investigation. Authorities are awaiting further updates regarding the potential retrieval of these assets.
Additionally, hackers funneled $100 million, or 40,233 ETH, through the OKX Web3 proxy. Out of this amount, investigators have managed to trace 16,680 ETH. However, $65 million, or 23,553 ETH, remains untraceable and requires additional data from OKX Web3.
Bounty Program Strengthens Recovery Efforts
A bounty program has played a crucial role in freezing stolen assets. Eleven entities have contributed to the efforts, with Mantle, Paraswap, and blockchain investigator ZachXBT being the top contributors.
Bybit and its partners have distributed $2.18 million in USDT to bounty hunters who are assisting in the investigation. More details on the bounty program are available on the Lazarus Bounty website. The initiative remains active, encouraging further participation in tracking and freezing stolen funds.
Conclusion
Investigators are intensifying efforts to freeze stolen funds before they are entirely laundered. With a significant portion of the assets still traceable, authorities are working closely with blockchain analytics firms and exchanges to prevent hackers from cashing out and making the funds unrecoverable.
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