ByBit, a cryptocurrency trading platform, is enlisting the help of online bounty hunters to recover funds stolen in what is believed to be the largest crypto heist in history. Hackers, allegedly from North Korea’s Lazarus Group, stole $1.46 billion in cryptocurrency last week and are attempting to launder the funds through a complex digital process. ByBit is now offering cash rewards to individuals and companies who can track and freeze the stolen assets.
The company’s CEO, Ben Zhou, has called for a collective effort to combat the hackers, launching a website that tracks progress and rewards participants. Bounty hunters can earn 5% of the identified stolen funds if they successfully persuade companies to freeze the assets, while the companies themselves also receive 5% for taking action. The initiative has already led to millions of dollars being recovered, with successful participants listed on a live leaderboard.
Cryptocurrency transactions are publicly recorded, allowing investigators to trace the movement of stolen funds as hackers attempt to obscure their origins. This transparency has enabled ByBit to collaborate with other crypto firms to block the laundering process. However, not all exchanges are cooperating; eXch, a platform known for anonymous transactions, has allegedly allowed $75 million from the heist to pass through its system.
The heist has raised concerns about trust and security in the crypto industry, which lacks central authorities like banks or regulators to address criminal behavior. ByBit’s bounty program represents an innovative approach to addressing these challenges, though experts warn that the incident could further damage perceptions of cryptocurrency as a volatile and risky asset class.
The stolen funds are believed to be used by North Korea to evade international sanctions and fund its military programs. While North Korea has not admitted involvement, researchers have linked the Lazarus Group to approximately $6 billion in crypto thefts in recent years. ByBit’s initiative may serve as a model for future efforts to combat cybercrime in the decentralized world of cryptocurrency.
— news from BBC.com