The North Korean hackers responsible for the Bybit breach are nearing the completion of laundering the stolen 499,000 ETH, which is worth about $1.5 billion. They have already moved roughly 70% of the funds and are expected to finish the process within three days. The funds have been moved using a variety of methods, including intermediary wallets, decentralized exchanges, and cross-chain bridges, which have made it difficult for investigators to track the stolen ETH . As the laundering process accelerates, there has been growing criticism of Circle, the issuer of the USDC stablecoin, for not promptly blacklisting the wallets associated with the hackers. Blockchain sleuth ZachXBT has pointed out that Circle took over 24 hours to take action, allowing the hackers enough time to transfer the stolen assets out of reach. This delay in response is not the first time Circle has been criticized for handling illicit funds slowly, with previous incidents like the Ledger and Nomad Bridge hacks raising similar concerns. Circle's CEO, Jeremy Allaire, defended the company's response, stating that they only act upon direct requests from law enforcement. He argued that intervening without such requests could cause harm to the market and users. However, critics like ZachXBT and security expert Taylor Monahan argue that waiting for legal approval creates unnecessary delays, which ultimately helps the hackers succeed in their laundering schemes. They believe that Circle should take a more proactive role in freezing stolen funds and preventing such incidents from spiraling out of control. Meanwhile, the FBI has identified the hacking group responsible for the attack as TraderTraitor, a North Korean-affiliated collective. In an attempt to recover the stolen funds, Bybit has launched a $140 million reward program for individuals who help trace and freeze the assets. So far, 16 people have been rewarded a combined $4.2 million for their contributions. Despite these efforts, the rapid pace at which the funds are being moved presents a significant challenge for authorities and further emphasizes the need for quicker responses from entities like Circle. In conclusion, while the hackers are nearing the end of their laundering process, experts continue to stress the importance of more effective and immediate responses to crypto crimes. Delays in freezing stolen assets risk making them untraceable, and this could undermine efforts to recover them in the future. The situation highlights the ongoing challenges faced by the crypto industry in dealing with hacking and fraud, and it raises questions about how companies like Circle can better manage their role in preventing and addressing such incidents.
