In a major cybersecurity breach, a hacker who targeted the Dubai-based cryptocurrency exchange Bybit has successfully laundered over $605 million worth of Ethereum (ETH), accounting for more than 50% of the stolen funds. The attack, which took place in February 2025, resulted in a staggering $1.5 billion loss, making it one of the largest crypto heists in history.
According to the FBI, the theft has been linked to the North Korean state-sponsored hacking group Lazarus, which has previously been involved in multiple high-profile crypto exploits. The stolen assets were quickly moved through various blockchain protocols to obscure their origins, with THORChain emerging as a critical tool in the laundering process.
THORChain, a decentralized cross-chain liquidity protocol, allows users to swap assets between different blockchains without requiring Know Your Customer (KYC) verification. This feature has made it a prime target for malicious actors seeking to disguise illicit funds. By leveraging THORChain, the hackers successfully funneled the stolen ETH through multiple transactions, making it difficult for authorities to trace and recover the assets.
The exploit has prompted renewed scrutiny of THORChain and other decentralized finance (DeFi) protocols that prioritize privacy. Discussions within the THORChain community have intensified, with some members advocating for enhanced security measures to prevent the misuse of the platform by cybercriminals.
Bybit, on the other hand, has been actively working with cybersecurity experts and law enforcement agencies to track the stolen funds. The exchange has announced a $140 million bounty for any information leading to the recovery of the assets.
This latest heist highlights the ongoing vulnerabilities in the crypto industry, especially concerning security lapses in DeFi protocols. As state-backed hackers refine their tactics, the industry faces growing pressure to implement stronger safeguards to protect users and prevent digital assets from being exploited for illicit activities.
Authorities continue to monitor blockchain activity in an attempt to trace the remaining stolen funds, but the hackers’ ability to move such a massive sum undetected raises serious concerns about the security of decentralized financial systems.
