Bybit Freezes $42.89M in Illicit Funds with Industry Partners, Halting Crypto Fraud. Swift Action Also Blocks $26M Meme Token Laundering Scheme.

Bybit successfully froze $42.89 million in illicit funds within just one day. The collaboration between Tether and THORChain as well as ChangeNOW and FixedFloat with Avalanche Ecosystem and CoinEx and Bitget and Circle resulted in this accomplishment.

Cryptocurrency exchange Bybit announced freezing $42.89 million in illicit funds in collaboration with industry partners, including Tether, THORChain, ChangeNOW, FixedFloat, Avalanche Ecosystem, CoinEx, and Circle. The swift action also saw the blocking of a meme token laundering scheme involving $26 million.

In a statement on Monday, Bybit said that the illicit funds were frozen within a day. The exchange noted that every partner played a role in locating the suspicious funds and freezing them.

Tether reportedly flagged an address that led to freezing 181,000 USDT, while THORChain performed a blacklist prevention. Meanwhile, ChangeNOW froze 34 ETH, and FixedFloat blocked 120,000 USDC and USDT from being accessed.

The combined actions of Avalanche Ecosystem and CoinEx included blocking the blacklist, with Avalanche freezing 0.38755 BTC and CoinEx freezing 84 USDT.

CoinEx also provided vital information that was essential to the operations, the statement noted. Bybit praised these entities for their fast and immediate responses, highlighting that security in the crypto field requires such quick collaborations.

“We would like to express our sincere gratitude to all parties involved for their immediate response and close collaboration in taking down this illicit activity. Together, we can continue to protect crypto users from fraud and ensure the integrity of the industry,” Bybit stated.

The exchange also noted that its team is working around the clock to monitor suspicious activities and suspicious crypto addresses.

Meanwhile, separate data showed that thieves used meme tokens to carry out their money laundering operations.

The “Bybit Exploiter” entity moved 60 SOL (around $10,000) from address 5STkQy…95T7Cq to 9Gu8v6…aAdqWS before the receiver deployed the “QinShihuang” token with 500,000 tokens.

The new token quickly gained popularity, trading to the tune of $26 million by Monday morning.

Bybit thanked Lily Liu, who leads the Solana Foundation, and members of the Pumpfun team for their prompt reaction. Through immediate action, the teams blocked and removed the suspicious Solana-based token before hackers could continue exploiting the ecosystem.

The incident demonstrates escalating threats in the crypto sphere, highlighting the necessity for close cooperation between industry members on a national scale. Bybit combined forces with its partners to showcase how early intervention can break away criminal activities after Bybit hacks and secure digital wealth markets.

Security and trust within the crypto realm demand ongoing collaboration and strict vigilance to keep advancing.