Bybit, a cryptocurrency exchange, has suffered a massive hack resulting in a loss of $1.4 billion, which has been linked to the Lazarus Group. In response to allegations of money laundering, the non-KYC crypto exchange eXch has denied any involvement, referring to the allegations as “FUD” and defending its role. Despite evidence from blockchain analysts connecting the stolen assets to the eXch platform, the exchange claims that the case is an isolated incident.
The hack on Bybit took place on February 21, 2025, and is considered one of the largest crypto thefts. The investigation, led by individuals such as ZachXBT and Nick Bax, points to the Lazarus Group, a hacking entity sponsored by North Korea, as the perpetrators.
Blockchain data reveals that the ETH reserves on eXch increased following the hack. Security firm SlowMist and on-chain analysts reported that over 20,000 ETH was moved through eXch within 24 hours, surpassing its usual daily volume of 800 ETH.
Nick Bax, a member of the Security Alliance, alleged that eXch processed $30 million in hacked funds on the day of the attack. ZachXBT claimed that eXch laundered $35 million and mistakenly sent 34 ETH ($96,000) to another exchange’s hot wallet.
In response to Bybit’s request to freeze the stolen assets, eXch refused to block the flagged wallet addresses. The exchange accused Bybit of damaging its reputation by freezing funds of its users in previous transactions.
Bybit CEO Ben Zhou called for a unified industry response to prevent hackers from cashing out stolen assets. He emphasized that the issue is not just specific to Bybit, but rather a general concern for the industry.
Security firm SlowMist urged crypto platforms to strengthen risk controls on funds originating from eXch. Analysts warned that the Lazarus Group is still exploiting non-KYC exchanges to launder stolen funds, raising concerns about the security policies of the cryptocurrency industry.
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