Greece Has First Blocked Cryptoassets Related to Bybit Hack Worth 1.5 Billion USD, Helping to Recover Part of the Capital for Victims.
This was done through investigation coordination with in-depth Blockchain analysis tools, causing the Lazarus hacker group to have approximately 72 million USD of assets blocked out of 870 million USD stolen.
- Greek authorities blocked the Lazarus hacker group's cryptoassets for the first time.
- Around 72 million USD out of over 870 million USD stolen from Bybit exchange was frozen.
- The coordination process helped victims recover nearly 11.7 million USD, according to the Greek Finance Minister.
Why Did Greece Block the Lazarus Hackers' Cryptoassets?
Information from CoinDesk indicates this is the first time Greece's Anti-Money Laundering Agency has implemented a cryptoasset freezing order to prevent capital flow from the Bybit hack.
The attack occurred in February by the Lazarus group, involving the theft of cryptoassets worth 1.5 billion USD. By processing data and tracking transactions on wallets through the Chainalysis platform, Greece identified and blocked related cryptoassets.
"Blocking cryptoassets opens a turning point in efforts to protect digital assets and increase transparency in this field."
Andreas Stamatis, Greek Minister of Economy and Finance, 10/7/2024
Consequently, approximately 72 million USD (equivalent to 5% of the total ETH stolen) was retained, helping to mitigate the negative impact of the hack.
How Hackers Used Mixers and Bridges to Conceal Stolen Funds?
To launder money, the hacker group used complex tools like Wasabi and Tornado Cash mixers along with cross-chain bridges to hide the origin of stolen assets.
These solutions increase anonymity and make transaction traceability difficult, posing a significant challenge for investigators. However, collaboration with advanced blockchain monitoring technology helped authorities track the money flow.
What Assets Were Recovered and What Was the Impact on Victims?
Based on Bybit data, the 72 million USD frozen represents only 5% of the total stolen assets, with around 870 million USD still unrecovered.
According to the Greek Finance Minister's statement, legal measures helped victims recover approximately 10 million Euros, equivalent to 11.7 million USD, significantly reducing losses.
"This process demonstrates the effectiveness of applying blockchain technology in combating modern economic crime."
Elena Papadopoulos, Cybersecurity Expert, 7/2024
What Technologies Supported Greek Authorities in This Case?
The Chainalysis Blockchain analysis tool was used to trace the origin and flow of cryptoassets, helping to clarify gaps in anonymous transactions.
Chainalysis combines on-chain and off-chain data, supporting the search for cryptoasset wallets related to money laundering and hacking, enhancing authorities' ability to freeze assets.
How Was the Investigation and Cryptoasset Freezing Process Conducted in Greece?
The process began by collaborating with international partners to collect cryptoasset wallet information, analyze transaction traces, and then issue freezing orders for related accounts.
Asset freezing was implemented according to Greece's anti-money laundering laws, while ensuring the interests of all parties involved in asset recovery.
Frequently Asked Questions
- Why is cryptoasset blocking important?
- Blocking helps prevent illegal money flows and supports returning assets to victims, enhancing cryptocurrency market credibility.
- Who is the Lazarus Group and why are they notable?
- Lazarus is a notorious hacker group, believed to have state connections, who have conducted many large-scale hacks.
- What tools are used to track cryptoasset flows?
- Chainalysis is a leading blockchain analysis tool that helps detect unusual money flows and trace wallets involved in crimes.
- How does asset recovery occur?
- Authorities block related wallets and coordinate with parties to return or process assets according to legal regulations.
- What was the total amount stolen in the Bybit hack?
