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Detailed Analysis and Report: Timeline of Bybit’s Stolen ETH Laundering
Introduction
In a cryptocurrency saga akin to a thrilling heist movie, Bybit found itself at the mercy of the Lazarus Group, renowned for their cyber warfare prowess, facing a staggering loss of around $150 million. This chronicle delves into the intricate timeline and unraveling of the purloined Ethereum (ETH), shedding light on the elaborate maneuvers executed by the crafty hackers.
Initial Conversion and Fund Flow
- Conversion of Illiquid Assets: With the finesse of expert alchemists, the Lazarus Group first transformed illiquid assets like staked tokens into the more flexible Ether (ETH), facilitating the fluid movement of funds on the blockchain. A hefty chunk, approximately $20 million in staked tokens, was transmuted into ETH post the Bybit breach.
- Complex Fund Flows: Transitioning from illiquid to liquid assets, the hackers concocted an intricate web of fund movements. Employing an intermediary wallet labyrinth, they shrouded the money trail in obscurity, confounding even the most astute blockchain sleuths.
Money Laundering Process
- Seamless Integration via Decentralized Exchanges: Venturing into the realm of decentralized exchanges, cross-chain bridges, and instant swap services, the stolen ETH underwent a metamorphosis, shedding its past with ease. These venues, devoid of Know-Your-Customer (KYC) verifications, provided the perfect cloak of anonymity for the rogue operators.
- Transformation to Cryptographic Gold: Transforming the bulk of ETH into Bitcoin and stablecoins like Dai served as a masterstroke in muddling the money’s origins, shrouding the ill-gotten gains in a veil of encryption.
- Divide and Conquer: Throughout the elaborate laundering dance, the malefactors continually diced the stolen funds into minuscule pools. From a single entity to 42 wallets initially, the funds were fragmented further into thousands of wallets in subsequent transitions.
Timeline of Key Events
- Bybit Hack: The initial breach ushered in a whirlwind, with a jaw-dropping $150 million vanishing act, etching its name in the annals of cryptocurrency heists.
- Commencement of Laundering: Swiftly pivoting post-theft, the hackers kicked off a mesmerizing laundering spectacle, employing clandestine maneuvers to thwart vigilant eyes.
- Laundering Progress: Recent reports unveil the successful laundering of approximately half of the pilfered ETH, a staggering sum of 266,309 ETH, within a mere five and a half days.
- Dormant Watch: To evade prying gazes, certain wallets harboring the loot lay dormant, allowing the culprits to bide their time and evade detection until the heat simmers down.
Conclusion
The Bybit saga, entwined with the laundering escapades of purloined ETH, serves as a vivid testament to the intricate stratagems orchestrated by cyber malefactors like the Lazarus Group. Their adeptness in converting assets, weaving complex fund trails, and leveraging decentralized havens for illicit gains underscores an ongoing battle against stealth. Despite the challenges, the pillars of the cryptocurrency community and vigilant analysts stand united, striving to unveil and defy such nefarious machinations.
References
Jinse Finance: Unveiling Lazarus’ monetary laundering tactics
BBX: Bybit hackers achieve a clean slate for 50% of the seized ETH
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Related sources:
[1] followin.io
[2] bbx.com