Compass Investments

– Bybit hackers are close to completing the laundering of $1.5 billion worth of stolen ETH. Circle criticizes delays in asset freeze measures.

North Korean hackers involved in the Bybit hack are close to completing the laundering of stolen 499,000 ETH (worth about $1.5 billion). They have already transferred about 70% of the funds and expect to complete the process within three days. The funds were transferred using a variety of methods, including intermediary wallets, decentralized exchanges and cross-chain bridges, making it difficult for investigators to track the stolen ETH.

As the money laundering process accelerates, Circle, the issuer of the USDC steiblcoin, has collaborated with hackers with ties To Circle, the issuer of the USDC steiblcoin, has been increasingly criticized for failing to blacklist wallets linked to hackers. Blockchain sniffer ZachXBT noted that Circle took more than 24 hours to take action, giving hackers plenty of time to ferret out stolen assets from Previous incidents such as the Ledger and Nomad Bridge hacks. Similar concerns were raised

Circle CEO Jeremy Allaire defended the company’s response, saying it only acted on a direct request from law enforcement. He argued that intervening without such a request could harm the market and users. However, critics such as ZachXBT and security expert Taylor Monahan argue that waiting for legal authorization will cause unnecessary delays and ultimately help hacker money laundering schemes succeed. They believe Circle should take a more active role in freezing stolen funds and preventing such incidents from getting out of hand.

Meanwhile, the FBI has identified the hacker group responsible for the attack as TraderTraitor, which has ties to North Korea. To recover the stolen funds, Bybit launched a $140 million reward program for those who helped trace and freeze the assets. So far, 16 individuals have been rewarded with $4.2 million. Despite these efforts, the rapid pace of fund transfers poses a significant challenge for authorities, further highlighting the need for rapid response from organizations like Circle.