North Korean Hackers Rapidly Laundering $1B Stolen from Bybit

The North Korean hacking group Lazarus (TraderTraitor) has completed the initial laundering phase of the record-breaking $1.4 billion crypto heist from Bybit, according to blockchain security firms.

• $400M already laundered using DeFi platforms to obscure transactions.
• 77% of stolen funds remain traceable, but laundering is accelerating.
• Hackers briefly paused laundering when the non-KYC service eXch couldn’t handle transaction volumes.

Investigators warn that North Korea is leveraging expanded money laundering infrastructure and underground financial networks, especially in China, making tracking efforts harder. The “flood the zone” technique—executing high-frequency transactions across multiple platforms—is overwhelming compliance teams and law enforcement.

Bybit has launched a bounty program, offering 10% of recovered funds for help in tracing stolen assets. The FBI urges DeFi platforms to block transactions linked to Lazarus actors.

This is the largest crypto hack in history, surpassing previous major breaches such as the Ronin Network ($600M) and Poly Network ($600M+).