The largest hack in the history of crypto is experiencing alarming developments

In just 10 days, hackers managed to launder the entire $1.4 billion stolen from the Bybit platform. Despite this rapid execution, blockchain security experts believe that a portion of the funds may still be recovered.

The largest hack in the history of crypto is experiencing alarming developments as hackers managed to launder the entire $1.4 billion stolen from the Bybit platform in just 10 days. Despite this rapid execution, blockchain security experts believe that a portion of the funds may still be recoverable.

The largest hack in crypto history now laundered

On February 21, 2025, the crypto exchange platform Bybit fell victim to an unprecedented cyberattack. Hackers stole over $1.4 billion in crypto assets, primarily in the form of Ether (ETH), Staked Ether (stETH), and other tokens based on the Ethereum blockchain.

This attack quickly became the largest cryptocurrency theft ever recorded, surpassing previous records set during the hacks of Ronin Network and Poly Network.

According to information published by Lookonchain, a company specialized in blockchain security, hackers were able to launder the entirety of the 499,395 stolen ETH, worth approximately $1.04 billion, in just 10 days.

This laundering operation was primarily carried out via THORChain, a decentralized protocol enabling exchanges between different blockchains without intermediaries. The speed and efficiency of this laundering reflect meticulous preparation and a deep understanding of decentralized finance mechanisms.

Several blockchain analysis companies, including Arkham Intelligence, have identified the Lazarus group as the main culprit behind this attack. The North Korean regime supports this hacker collective, which conducts sophisticated operations to finance Pyongyang’s nuclear weapons program.

According to their analysis, the hackers' actions began on February 21 with the theft of 499,395 ETH from the Bybit exchange. They quickly moved the stolen funds to various wallets and began laundering them through various mixers and inter-chain exchanges over the following days.

Despite the massive-scale laundering operation, hope remains for recovering some of the stolen assets. Deddy Lavid, co-founder and CEO of Cyvers, a company specializing in blockchain security, claims that authorities can still trace some of the funds despite attempts at obfuscation.

“While the use of mixers and inter-chain exchanges significantly complicates traceability, current technologies based on artificial intelligence and blockchain analysis, combined with close collaboration with exchanges and regulators, can still help identify and potentially freeze some assets,” he stated.

Ben Zhou, CEO of Bybit, partially confirms this view when he stated today on his X account that authorities can still trace nearly 77% of the funds that hackers stole. However, he also acknowledges that about $280 million has completely vanished from the radar, while authorities have already managed to freeze 3% of the assets.

This major incident has prompted the entire crypto sector to rethink its security measures. Michael Pearl, vice president of strategy at Cyvers, suggests a particularly promising solution.

“We could prevent up to 99% of hacks by simulating and validating blockchain operations in a secure environment before their actual execution. This technology, known as off-chain transaction validation, would enable us to identify and block malicious transactions in time.”

In summary, this record theft perfectly illustrates the security challenges faced by the crypto industry. Between the increasing sophistication of attacks and the need to maintain accessible systems, finding the balance remains difficult to effectively protect the billions of dollars now circulating across different blockchains.

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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.