The $1.5B Bybit Hack and the Urgency to Strike
Bybit has suffered a $1.5 billion breach, highlighting the severity of the urgency for crypto theft immediate action steps to be taken. This cryptocurrency hack is one of the most significant in recent history, emphasizing the need for immediate action regarding this crypto theft immediate action. While the attackers’ identities are often masked, the hallmarks strongly suggest the involvement of the Lazarus Group.
The group behind this attack is being referred to as TraderTraitor, but this designation is not unique. Many North Korean-backed hacking collectives frequently operate under different names depending on the operation. However, the techniques used, the laundering patterns observed, and the on-chain links to past Lazarus hacks strongly indicate that this attack was conducted by Lazarus or another DPRK-backed cybercriminal group.
Right now, the hackers are moving quickly to obscure and off-ramp the stolen funds, using a combination of well-established laundering tactics:
- Chain Hopping – Rapidly swapping assets across multiple blockchains to break forensic traceability.
- Utilization of Swap Exchanges (e.g., Exch) – Using non-KYC swap services to avoid direct links to centralized exchanges.
- Wasabi-Style CoinJoin Mixing – Anonymously operated self-hosted CoinJoin coordinator based on Wasabi Wallet’s open-source software and server tools.
Unlike the original Wasabi mixer operated by zkSNACKs, which shut down in 2024, this new Wasabi-style mixing service has significantly lower liquidity, creating an opportunity for Bybit to disrupt and neutralize the hackers’ efforts before the laundering process is completed.
Why Bybit Must Infiltrate the Hackers’ CoinJoin Mixing Operation
The hackers’ primary method of anonymization is their Wasabi-style CoinJoin service, which only works effectively if it has sufficient liquidity to generate a strong anonymity set. Since this new iteration of CoinJoin has limited liquidity, Bybit can strategically infiltrate and flood the mixing process, making it significantly harder for the hackers to achieve true anonymity.
By actively participating in the CoinJoin rounds, Bybit can:
- Disrupt the hackers’ laundering process by injecting controlled Bitcoin transactions into the mix, weakening their obfuscation.
- Analyze CoinJoin outputs to identify “doxxic change” leaks, which occur when hackers accidentally leave traceable transaction remnants.
- Track wallet behavior and transaction patterns, allowing for forensic tracing even after mixing.
- Extract actionable intelligence that can be used to aid in the recovery of stolen funds and assist law enforcement.
This is not a passive approach—this is direct intervention in the hackers’ laundering process, using their own techniques against them.
Execution Plan: How Bybit Can Disrupt the Laundering Process
1. Monitor and Identify Laundering Wallets
- Work with blockchain analytics firms to track hacker-controlled funds entering CoinJoin mixing rounds.
- Monitor swap exchange deposits and cross-chain transactions leading into the mixer.
- Identify wallet clusters linked to previous Lazarus operations, confirming connections between the stolen funds and the DPRK-backed group.
2. Allocate Bitcoin for Controlled Mixing Participation
- Fund Bybit-controlled wallets with Bitcoin to enter the exact same CoinJoin mixing rounds as the hackers.
- Participate across multiple rounds to maximize visibility and data collection.
3. Flood the CoinJoin Liquidity Pool
- Since this new Wasabi-style mixer lacks liquidity, Bybit does not need significant Bitcoin reserves to influence the anonymity set.
- Bybit can inject controlled transactions, disrupting the hackers’ ability to blend into the mix.
4. Analyze Outputs and Exploit “Doxxic Change”
- Hackers often leave traceable change outputs when mixing funds.
- By tracking unmixed remnants, repeated transaction sizes, and address reuse, Bybit can pinpoint hacker-controlled wallets and extract valuable intelligence.
5. Collaborate with Law Enforcement and Cyber Forensics Teams
- Once Bybit gathers enough intelligence, it can work with law enforcement agencies to accelerate fund seizure and recovery before the assets are fully off-ramped.
Why This Needs to Happen Immediately
With each completed laundering cycle, the stolen funds become harder to trace and recover. The hackers are actively executing their Wasabi-style CoinJoin mixing operations, and every successful round gets them closer to fully obfuscating their transactions.
Bybit has a narrow window to act—this is the critical moment to launch an offensive strategy by infiltrating the mixer, disrupting the process, and extracting intelligence before the funds disappear into fiat.
Conclusion: A Rare Opportunity for Bybit to Strike Back
The $1.5 billion Lazarus attack on Bybit is happening right now, and the stolen funds are already moving through chain-hopping, swap exchanges, and Wasabi-style CoinJoin mixing. Bybit is in a unique position to intervene—not just by tracking transactions, but by actively infiltrating and disrupting the hackers’ primary laundering method.
This is not a hypothetical opportunity—this is a rare, high-impact chance to directly interfere with Lazarus’ operations and prevent the laundering of stolen funds.
The window is closing fast. Bybit must act now.