Analysts claim Underground Systems in China Prepared for Bybit Event

Analysts express concern that North Korea might have broadened its laundering operations, as over $400 million from Bybit's hack was swiftly laundered.

More than $400 million of the $1.46 billion stolen in Bybit's incident was laundered within a few days, leading analysts at TRM Labs, a blockchain forensic firm, to suspect that North Korea may have expanded its laundering activities.

In a blog post dated Feb. 27, the analysts highlighted how the attackers managed to transfer almost half a billion dollars in less than a week. They employed intermediary wallets, crypto swaps, decentralized exchanges, and cross-chain bridges to cover their tracks.

"This swift laundering indicates that North Korea has either expanded its money laundering infrastructure or that underground financial networks, particularly in China, have improved their ability to absorb and process illicit funds."

TRM Labs

Read More: "Live Launch of Avalanche Crypto Card Pushes for Widespread Crypto Usage"

According to the analysts, North Korean hackers generally use crypto mixers to conceal stolen funds before cashing out. However, the magnitude of the Bybit incident has compelled them to employ new tactics. Instead of mixers, they are now utilizing multiple wallets and decentralized platforms to disguise the money trail.

Initially, some of the stolen Ethereum was transferred via BNB Chain and Solana. Presently, most of it has been moved to the Bitcoin network. Despite the swift laundering, a significant amount of the Bitcoin remains untouched, hinting that the attackers are preparing for large-scale liquidation through OTC networks, as suggested by the analysts.

Bybit suffered a loss of $1.46 billion in a multi-stage attack, which security experts attribute to Safe Wallet. The attackers allegedly infiltrated a Safe{Wallet} developer's device, deceiving Bybit's Safe wallet owner into approving a malicious transaction.

Read More: "Coinbase's Shares Decrease 5.4% due to BofA Lowering Price Forecast by 14%"