In an unprecedented move, the cryptocurrency trading platform ByBit is appealing to the public for assistance in tracking down a staggering $1.46 billion (£1.1 billion) worth of stolen cryptocurrency, allegedly pilfered by the notorious Lazarus Group from North Korea. After the theft, ByBit initiated a crowdsourced bounty program, encouraging crypto enthusiasts and investigators to help recover the funds by offering cash rewards for those who successfully halt the hackers’ cash-out efforts.
CEO Ben Zhou likened this situation to a war against the hackers, inviting the community to unite against the Lazarus Group. ByBit's newly launched website includes a real-time leader board that celebrates the efforts of individuals and companies that manage to trace and secure portions of the stolen funds. Successful tipsters will receive a 5% bounty for any identified amounts that can be paused or seized.
As criminals work quickly to launder the stolen cryptocurrency through a complicated network of transactions, the public nature of blockchain technology offers a beacon of hope for investigators. By tracking the money as it shifts to smaller transactions and various wallets, skilled sleuths can sometimes determine its whereabouts.
The bounty initiative has been hailed as a significant step forward by experts, with Tom Robinson from crypto investigation firm Elliptic noting that such a model could mobilize talented blockchain analysts to combat theft. However, the heist has also raised concerns about the trustworthiness of the cryptocurrency exchange industry, especially given ByBit's position as the second-largest exchange globally. Louise Abbott from Keystone Law warned that the implications of such a high-profile attack could tarnish perceptions of security within a sector already grappling with volatility.
The absence of a regulatory framework means cryptocurrency victims often have nowhere to turn for support. As a result, ByBit must rely on collaborative goodwill from other exchanges to aid in recovery efforts. Unfortunately, cooperation isn’t guaranteed; some platforms, like eXch—known for facilitating anonymous transactions—are reportedly resisting assistance, even as investigations indicate substantial laundering activity involving the ByBit theft.
Plans are in the works to extend this bounty platform to assist other victims of the Lazarus Group, whose exploits have allegedly led to $6 billion in thefts over the last few years. Researchers suggest that the stolen cryptocurrency serves to help North Korea evade sanctions and enhance its military capabilities. Meanwhile, North Korea remains silent on allegations linking it to these cybercriminal activities.
