Crypto Chaos: $1B in Swaps After Bybit’s $1.4B Oopsie! 💸

by

So, picture this: Bybit, the cryptocurrency exchange, just had a massive security breach. I mean, who doesn’t love a good heist story? Users are now scrambling like it’s Black Friday to get their assets onto decentralized platforms. Enter THORChain, the cross-chain swap protocol that’s suddenly the belle of the ball. 💃

On February 26, THORChain processed a jaw-dropping $859.61 million in swaps. Yes, you read that right. That’s a new daily volume record! And just when you thought it couldn’t get any crazier, February 27 rolled around, and they added another $210 million to the pot. That’s over $1 billion in just two days! All thanks to Bybit’s little $1.5 billion hack on February 21. Talk about a plot twist! 🎢

THORChain: The Good, The Bad, and The Illicit

Now, before we start throwing confetti, let’s address the elephant in the room. THORChain has been accused of being a bit of a party host for laundering stolen funds. 🎉 Not exactly the kind of reputation you want, right? The infamous North Korean hacking group, Lazarus, has been known to use platforms like THORChain to turn their ill-gotten gains into Bitcoin. Because why not? Who doesn’t love a good money-laundering scheme?

In response to these allegations, THORChain’s development team has decided to play nice and help wallet and integration partners screen for any shady business. Engineer “Pluto” from Nine Realms, a core developer for THORChain, admitted that, yes, there are some unsavory funds floating around, but they’re on it! They’re like the crypto version of the neighborhood watch. 🕵️‍♂️

“When we first started seeing illicit flows on THORChain, our team bridged the gap for wallets and integration partners, helping them integrate screening services like @elliptic. I am pleased to that @SwapKitPowered and @RangoExchange offer this solution to their partners. Any…”

— Pluto (9R) (@Pluto9r) February 22, 2025

In a bold move to keep things above board, THORChain hit the pause button on Bitcoin and Ethereum lending services in January after racking up about $200 million in liabilities. Because nothing says “we’re responsible” like a little debt restructuring, right? But don’t worry, the swap functionalities are still up and running, so you can keep trading like it’s 1999! 🎉

Hackers Gonna Hack

Even with the lending services on hold, hackers are still finding ways to launder their loot. The Bybit hackers have been busy moving their stolen funds around, and guess what? A significant chunk has been laundered through decentralized platforms like THORChain. Surprise, surprise! 🙄

Just yesterday, blockchain data revealed that the hacker transferred 45,900 Ether, valued at around $113 million, in the last 24 hours. That brings the total laundered to over 135,000 ETH, worth about $335 million. I mean, who needs a legitimate job when you can just hack your way to riches?

According to our favorite pseudonymous blockchain analyst, EmberCN, the hacker is still sitting on roughly 363,900 ETH, which is about $900 million. Just casually chilling with a small fortune. No biggie.

As of February 27, investigators have been tracing the stolen assets, which are being converted into Bitcoin and scattered across various blockchain addresses. It’s like a game of hide and seek, but with millions of dollars. The FBI is even getting involved, asking the crypto community to help track down these transactions. They’ve published a list of Ethereum addresses linked to the stolen funds, urging everyone to keep their eyes peeled for any suspicious activity. Because, you know, it’s not like they have anything better to do. 🕵️‍♀️

Read More

2025-02-27 21:35