On-chain expert ZachXBT warns of poor security in the crypto industry, especially after North Korea laundered $1.4 billion in stolen Bit.

ZachXBT, a renowned on-chain investigator, has strongly condemned the lax security and lack of accountability in the Bit industry following North Korea's money laundering of $1.4 billion. He believes that unless the government intervenes, the industry will be unable to resolve the issue on its own.

The crypto industry is "being destroyed" by security vulnerabilities, ZachXBT declares

ZachXBT expressed disappointment in the way the Bit industry handles attacks and exploits, using the recent Bybit hack as an example. He considers the experience of supporting the freezing of stolen assets to be "worth reflecting on" and reveals serious vulnerabilities in the system.

"This industry is being destroyed in an unimaginable way when it comes to exploits and attacks," ZachXBT shared on Telegram. He criticized many "decentralized" protocols for accepting trading volume and fees from North Korea but "refusing to take responsibility." ZachXBT also believes that centralized exchanges (CEXs) respond slowly to suspicious transactions, while the Know Your Transaction (KYT) system is easily bypassed, and Know Your Customer (KYC) only poses a risk of data leakage for users without effectively preventing crime.

ZachXBT warned that strict government regulations could harm the industry, but without external intervention, the industry will struggle to address these weaknesses. The case of North Korea laundering $1.4 billion in stolen Bit "has shown that the entire system is truly broken," he concluded.

Additionally, ZachXBT mentioned the case of the "Hyperliquid whale," a prominent trader who made over $9 million by Shorting Bit (BTC) in a single day. He revealed that this "whale" is actually a cybercriminal using stolen funds for gambling and that details about the individual's identity will be released soon.