The digital trail of the massive Bybit hack is getting clearer

The pilfered ETH was converted into 12836 BTC and then scattered across a jaw-dropping 9117 wallets, averaging just 1.41 BTC per wallet.

The massive Bybit hack, which saw hackers steal 500,000 ETH (worth $1.23 billion) from the exchange, has become a hot topic in the crypto sphere. The digital trail of the hack is now getting clearer, revealing the elaborate efforts of the hacker to launder the stolen ETH.

The pilfered ETH was converted into 12,836 BTC and then scattered across a staggering 9,117 wallets, averaging just 1.41 BTC per wallet. To further complicate matters and ensure anonymity, the attacker utilized crypto mixers like Wasabi, CryptoMixer, Railgun, and TornadoCash.

These actions aimed to fragment the stolen BTC, rendering it nearly impossible to follow with standard blockchain analysis tools. Despite these intricate maneuvers designed to obscure the funds, investigators have managed to trace a significant 88.87% of the stolen cryptocurrency.

However, a frustrating 7.59% of the funds have vanished without a trace, adding a layer of complexity to the ongoing investigations.

In response, Bybit has swiftly frozen 3.54% of the stolen funds, amounting to 17,700 ETH worth nearly $35 million, preventing any further movement. This rapid action was made possible through quick collaboration with other exchanges and blockchain analysis firms.

Bybit CEO, Ben Zhou, has issued a direct appeal to the crypto community, urging anyone with insights to assist in deciphering the complex layers of mixer transactions.

Bybit’s security team has flagged the increasing use of Bitcoin mixers as a major obstacle in their recovery efforts. Decoding these transactions has now become the platform’s top priority. Just as Zhou emphasized in his post,

“After mixer the funds went to various p2p vendors. We believe this trend will grow as more funds will go through mixers. Decoding mixer transactions is the number one challenge we face now. If you can help, please reach out.”

To expedite the process of tracking down the remaining funds, Bybit has put out bounties for individuals who can provide actionable intelligence.

Over the past 30 days, the exchange has received a total of 5,012 bounty reports, with 63 of them deemed valid and providing useful leads.