Catastrophe struck the cryptocurrency world on February 21, 2025, when hackers made off with a staggering $1.5 billion from Bybit’s Ethereum cold wallet. The largest crypto theft in history. Just like that. Gone.
The North Korean Lazarus Group didn’t waste time celebrating their ill-gotten gains. They’ve been busy. Really busy. As of March 21, investigators have tracked 86% of the stolen funds—converted to approximately 12,836 Bitcoin—spread across an eye-watering 9,117 separate Bitcoin wallets. Talk about splitting your eggs into different baskets.
The attackers were craftier than your average cyber-criminal. They used social engineering to compromise a developer’s computer, injected malicious JavaScript into the transaction signing process, and fundamentally tricked Bybit’s multi-signature wallets into approving transfers to their wallets. Clever. Devastating. Effective.
Beyond common hacks, these thieves manipulated people, code, and security—a terrifying trifecta of technical prowess.
Bybit remained solvent despite the attack, but that didn’t stop panic. Users withdrew $10 billion within hours, and Bitcoin’s price plummeted 20% from January’s all-time high. Nothing scares crypto bros like the prospect of losing their digital fortunes.
The hackers’ laundering operation reads like a masterclass in criminal finance. They’ve employed decentralized exchanges, cross-chain bridges, and no-KYC swap services. They’ve used mixers like Wasabi Wallet to further obscure transaction trails. The hackers began their sophisticated laundering operations within two hours of executing the theft. Only 3.54% of funds have been frozen, while 7.59% have vanished into the dark web’s abyss.
Regulators reacted predictably. The FBI blamed North Korea on February 26. The SEC launched yet another special unit. Dubai and French authorities are reconsidering Bybit’s licenses. Bureaucracy at its finest!
Recovery efforts continue with limited success. Bybit’s bounty program offers up to 10% for valid recovery leads, with 63 of 5,000 reports deemed helpful. The company has already awarded 4.3 million dollars to 19 successful bounty hunters tracking portions of the stolen funds. Bitget’s CEO even extended a 40,000 ETH loan to help stabilize the situation.
But the damage is done. The funds are scattered. And the crypto world is left wondering—not if, but when and where the next massive hack will hit.
