ByBit, a prominent cryptocurrency trading platform, is offering cash rewards to help recover a staggering $1.46 billion worth of stolen crypto following what’s believed to be the largest theft in history. The hack, attributed to North Korea’s infamous Lazarus Group, has left the company scrambling to prevent the laundered funds from being cashed out.
The criminals are using a complex money laundering operation to break the stolen funds into smaller amounts and obscure their origins. To combat this, ByBit has launched a bounty program, inviting crypto investigators worldwide to track and freeze the stolen funds. Those who successfully locate and assist in freezing the stolen crypto will receive 5% of the identified sum, with the same reward for the companies that act on their information.
The initiative has already seen millions of dollars paid out to successful bounty hunters, with a live leaderboard tracking the progress. ByBit’s CEO, Ben Zhou, posted online, urging individuals to join the fight against Lazarus and other malicious actors in the crypto world.
Crypto investigation firm Elliptic praised the effort, calling it a “positive innovation” that will motivate talented blockchain experts to track the stolen funds. However, experts like Louise Abbott from Keystone Law caution that such high-profile heists could further damage trust in the already volatile crypto industry, warning that similar attacks could occur again.
Without central regulatory oversight, ByBit is relying on the cooperation of other crypto firms to help freeze the stolen assets. However, not all companies are responding. One such firm, eXch, has allegedly refused to cooperate, despite reports that it has been used to launder stolen crypto funds.
The Lazarus Group has long been linked to cybercrimes, with an estimated $6 billion in crypto thefts in recent years. While North Korea denies involvement, experts believe the stolen funds are used to bypass international sanctions and fund military development.
ByBit’s bounty scheme has extended its reach to other victims of the Lazarus Group, offering hope that this new crowdsourced approach could recover the stolen funds and prevent further damage to the crypto ecosystem.
Sources: Ben Zhou, CEO of ByBit; Tom Robinson, Elliptic; Louise Abbott, Keystone Law.
