In a groundbreaking move to counter one of the largest cryptocurrency heists in history, ByBit, a prominent crypto trading platform, is enlisting the help of the community to recover $1.46 billion stolen by the notorious Lazarus Group, believed to be affiliated with North Korea. The platform has launched an online bounty program, offering rewards to individuals who can track down the thieves and prevent them from cashing out their illicit gains.
The heist, which transpired last week, has raised significant alarm in an already volatile cryptocurrency market, prompting ByBit’s CEO Ben Zhou to ask for public assistance in a battle against the criminal organization. In a post on social media, Zhou invited individuals to take part in this initiative, emphasizing the need for collaboration to combat the Lazarus Group. "Join us on war against Lazarus," he urged, directing followers to a newly created website designed to facilitate the bounty program.
The stolen cryptocurrency is stored in public wallets, allowing vigilant observers to trace the flow of funds as criminals attempt to launder the stolen assets. The newly established website features a live leaderboard that showcases companies and individuals who have successfully identified portions of the stolen funds. ByBit plans to reward participants with a 5% bounty for successfully persuading organizations to freeze the stolen tokens and an additional 5% for those companies taking action against the illicit activity.
Tom Robinson from the crypto investigation firm Elliptic praised the bounty program as a promising innovation that could empower talented blockchain investigators to help recover stolen assets. However, there are concerns about the broader implications for the cryptocurrency industry. Louise Abbott, a crypto fraud partner at Keystone Law, warned that the breach could further damage already fragile trust in the sector.
In the decentralized world of cryptocurrency, victims of such thefts are often left without recourse to traditional regulatory bodies. ByBit has expressed reliance on the cooperative spirit of other companies within the industry to help reclaim the assets. However, not all entities are responsive; one exchange, eXch, is reportedly refusing to cooperate with ByBit's requests for assistance. Researchers from Elliptic claim that eXch has allowed the laundering of hundreds of millions of dollars in criminally derived crypto assets.
As investigations continue, ByBit is opening its bounty website to other victims of the Lazarus Group's prolific hacking. The site prominently features a logo depicting North Korea's leader, Kim Jong Un, with a knife through his hair, symbolizing the battle against cybercrime. The Lazarus Group has been linked to approximately $6 billion in crypto thefts, with stolen funds allegedly used by North Korea to evade international sanctions and bolster its military capabilities. Despite mounting evidence, North Korea has never admitted to any connection to the infamous hacking group.
