Bybit exchange announces LazarusBounty.com, a hacker bounty platform, after the $1.5 billion cryptocurrency theft in February, which is said to be the largest hack in history.
The cyberattack on the cryptocurrency exchange Bybit on February 21, causing nearly $1.5 billion in losses in the form of Ethereum (ETH) and synthetic ETH tokens, has prompted the exchange to launch a new initiative to combat cybercrime.
On February 25, Bybit announced LazarusBounty.com, a bounty platform focused on identifying illegal activities, pursuing hackers, and enhancing security standards in the cryptocurrency industry. According to blockchain security firm Elliptic, the Bybit hack is the largest in the history of cryptocurrencies.
Four-pronged strategy against cybercrime
LazarusBounty.com operates based on a four-pronged strategy, combining advanced technology, legal expertise, and community collaboration. First, the platform aggregates security data from leading organizations such as Chainalysis, Arkham, and GoPlus, creating a centralized database to help investigators and the community monitor illegal activities in real-time.
Second, LazarusBounty.com mobilizes the participation of renowned blockchain forensic experts, including ZachXBT and Yu Xian (SlowMist), to conduct in-depth investigations when serious violations occur. These experts use advanced forensic tools to trace the stolen funds, identify the attackers, and coordinate with law enforcement agencies and affected platforms.
Third, LazarusBounty.com establishes a bounty leaderboard system, recognizing and rewarding effective contributions in tracing and recovering stolen assets. This system encourages active community participation in the fight against cybercrime.
Finally, Bybit has established a security advisory board, including Chief Security Officers (CSOs) from various large blockchains. This board is tasked with sharing intelligence, enhancing security protocols, and coordinating defense measures across the industry.
According to on-chain data from Arkham, the stolen funds from Bybit are being converted to Bitcoin (BTC) and DAI through THORChain and the OKX Web3 Swap feature. So far, the hackers have swapped $6.2 million into BTC. The blockchain analysis platform SpotOnChain also noted that around $250 million has been laundered.
Based on the attack structure and money laundering process, analysts suspect that the North Korean Lazarus Group is behind the Bybit hack. Elliptic points out that Lazarus typically uses a layering strategy, including transferring funds through multiple wallets, using cross-chain bridges, swapping assets through DEXes and swap services, and obfuscating transactions with tools like Tornado Cash. Currently, the Lazarus group appears to be in the stage of using multi-chain solutions to layer and conceal the origin of the funds.
Bybit CEO, Ben Zhou, affirmed the exchange's commitment to combating cybercrime: "In today's blockchain world, transparency is not just a principle, but the strongest weapon against cybercrime. With LazarusBounty.com, we make it clear that every transaction can be traced, and every hacker will be held accountable."
