THE U.S. Federal Bureau of Investigation (FBI) has traced the cyber-attack that resulted in the theft of approximately US$1.5 billion from the cryptocurrency exchange Bybit to North Korean cyber actors, according to a report by the South China Morning Post.
This theft, labeled “TraderTraitor” by the FBI, is now considered one of the largest digital currency heists in history.
In an official statement, the FBI revealed that the perpetrators behind the breach were able to swiftly convert the stolen funds into Bitcoin and various other cryptocurrencies.
The malicious actors then scattered the stolen assets across a number of different blockchain addresses in an attempt to obscure the origins of the funds.
The FBI also highlighted concerns about the stolen assets being laundered through further transactions before potentially being converted into traditional fiat currency.
This ongoing process could complicate efforts to trace and recover the stolen funds.
Bybit, a major cryptocurrency exchange based in Dubai that serves more than 60 million users globally, confirmed the security breach late last week.
The exchange reported that the theft occurred during a routine procedure where funds were transferred from a cold wallet—secure offline storage—into a warm wallet used for daily transactions.
However, during this transfer, attackers manipulated the process, leading to the unauthorized transfer of 401,000 Ethereum (ETH), which at the time was valued at approximately US$1.5 billion, to an unidentified address.
In the wake of this significant breach, Bybit's CEO, Ben Zhou, took to the company's platform to reassure its customers.
He said the exchange remains financially stable and solvent despite the substantial loss. Zhou clarified that all client assets are fully backed on a one-to-one basis and assured users that unaffected wallets, as well as withdrawal services, continue to operate without interruption.
Furthermore, Zhou assured the public that Bybit's security team, in cooperation with forensic experts, is actively investigating the incident.
The company is making every effort to track the stolen funds and recover them, though the complexity of the laundering process may hinder swift resolution. – February 27, 2025
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