North Korean hackers involved in the Bybit breach are close to laundering 499,000 ETH, valued at around $1.5 billion. They have already moved about 70% of the stolen funds and expect to complete the process in three days. The hackers used various methods, such as intermediary wallets and decentralized exchanges, making it hard for investigators to track the stolen ETH.
Criticism has grown against Circle, the issuer of the USDC stablecoin, for not quickly blacklisting the hackers’ wallets. Blockchain investigator ZachXBT noted that Circle took over 24 hours to act, giving hackers time to transfer the stolen assets. This is not the first time Circle has faced backlash for slow responses to illicit funds, with past incidents like the Ledger and Nomad Bridge hacks raising similar concerns.
Circle’s CEO, Jeremy Allaire, defended the company’s actions, stating they only respond to direct law enforcement requests. He argued that acting without such requests could harm the market and users.
However, critics like ZachXBT and security expert Taylor Monahan believe that waiting for legal approval causes delays that help hackers succeed in laundering. They argue that Circle should be more proactive in freezing stolen funds.
The FBI has identified the hacking group as TraderTraitor, which is linked to North Korea. To recover the stolen funds, Bybit has launched a $140 million reward program for information that leads to the tracing and freezing of the assets.
So far, 16 people have received a total of $4.2 million for their help. Despite these efforts, the rapid movement of funds poses a significant challenge for authorities and highlights the need for faster responses from companies like Circle.
