ByBit launches a bounty program to recover stolen crypto after the Lazarus Group’s $1.5B hack, enlisting blockchain investigators worldwide.
ByBit Hit by Largest Crypto Theft in History
ByBit, a major crypto trading platform, lost $1.46 billion in a hack linked to North Korea’s Lazarus Group. The criminals are laundering the funds through a sophisticated process.
Bounty Program Calls for Crypto Sleuths
ByBit is crowdsourcing investigators by offering cash rewards to those who track stolen funds.
CEO Ben Zhou urged the crypto community to join the fight, stating, “Join us on war against Lazarus,” while launching a dedicated bounty website.
Tracking Crypto Through Blockchain
Since cryptocurrencies are stored in public wallets, blockchain investigators can trace transactions.
ByBit’s new website features a leaderboard displaying those who successfully locate stolen funds.
Cash Rewards for Tracking and Freezing Funds
ByBit is offering a 5% reward to individuals who locate and prevent criminals from cashing out.
Another 5% goes to firms that successfully freeze stolen assets. Millions in bounties have already been paid.
Elliptic Praises Initiative, Keystone Law Raises Concerns
Crypto intelligence firm Elliptic called the program a “positive innovation” that motivates skilled blockchain investigators.
However, Louise Abbott of Keystone Law warned that the hack damages trust in an already volatile industry. “If such a hack can occur on this scale in the world’s second-largest exchange, it can certainly happen again,” she said.
ByBit Faces Challenges Without Regulators’ Support
Unlike traditional finance, crypto lacks central oversight, leaving ByBit reliant on the goodwill of other exchanges.
Some firms are refusing to cooperate. ByBit’s website tracks unresponsive platforms, including eXch, a service accused of laundering criminal funds.
$75M Tracked Through Uncooperative Exchange
Elliptic reports that eXch processed $75 million from the ByBit hack. The platform allegedly enables anonymous crypto swaps and has handled hundreds of millions from criminal activity.
ByBit Expands Bounty Program for Future Hacks
ByBit plans to open its bounty system to other hacking victims.
The site features a logo of North Korean leader Kim Jong Un’s hair with a knife through it, emphasizing its stance against Lazarus.
North Korea’s Role in Crypto Hacks
Experts say the stolen funds help North Korea evade sanctions and fund military programs. The country denies any link to Lazarus Group, despite accusations of orchestrating $6 billion in crypto thefts.
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