Bybit hacker launders $605M ETH via THORChain. FBI confirms Lazarus Group’s role. Devs quit, crackdown incoming, crypto world on edge.
The Bybit hacker is moving fast, already laundering $605M ETH (54% of stolen funds) through THORChain, a decentralized swap protocol now facing major heat. The $1.5B Bybit hack on Feb. 21 is officially the biggest crypto heist ever, with blockchain sleuths confirming North Korea’s Lazarus Group is behind it.
THORChain’s swap volume soared past $1B after the hack, but backlash came fast. A vote to block Lazarus-linked transactions got overturned, leading to core dev “Pluto” quitting and validator TCB threatening to leave if nothing changes.
Meanwhile, the FBI is stepping in, urging exchanges and validators to cut off Lazarus-linked wallets. But THORChain’s founder John-Paul Thorbjornsen says the protocol isn’t at fault, claiming no sanctioned wallets have interacted with it and blocking funds isn’t realistic.
The hacker remains with $514M ETH, and unless a change of circumstances occurs, they can continue sending money anonymously. This hack also points to an underlying issue—bad actors have the ability to take advantage of decentralized platforms since regulators are playing catch-up. Some fear that this will cause governments to squeeze the crypto tighter, especially privacy-focused platforms.
Crypto’s paying attention. Whatever happens next may reshape the landscape.
Also Read: Trade Anything, But Never Your Bitcoin – Michael Saylor
