Recovery efforts are ongoing, with Bybit collaborating with security experts to enhance tracing capabilities against laundering tactics.

The Lazarus Group has a notorious history of cybercrimes, having stolen an estimated $3.4 billion in cryptocurrencies since 2007, employing sophisticated techniques including social engineering.

On February 21, 2025, North Korean hackers from the Lazarus Group executed the largest cryptocurrency heist in history, stealing $1.5 billion in Ethereum from the Dubai-based exchange Bybit.

Bybit's CEO, Ben Zhou, reported that 440,091 ETH was exchanged for 12,836 BTC, which were then distributed across 9,117 wallets, complicating recovery efforts.

Zhou revealed that 86.29% of the stolen funds have been converted into Bitcoin using mixers like Wasabi and Tornado Cash, further obscuring their origins.

Zhou emphasized that the use of Bitcoin mixers significantly complicates the tracking of stolen assets, posing additional hurdles for investigators.

The Bybit hack accounted for approximately 92% of all crypto losses in February 2025, indicating a staggering increase in total lost crypto compared to previous months.

The incident has raised alarms within the crypto industry about the security of exchanges and the need for improved regulations to ensure safety and mass adoption.

Zhou has called for more bounty hunters to assist in decoding mixer transactions, stressing the importance of community participation in combating cybercrime.

To date, only 3.5% of the stolen funds have been successfully frozen, highlighting the challenges faced in recovering the assets.

The decentralized nature of cryptocurrencies allows for easier evasion of law enforcement, complicating efforts to combat money laundering and fraud.

Critics have pointed out that Bybit's previous bug bounty reward of only $4,000 was insufficient, suggesting that higher rewards could improve security.