A massive hack on Bybit that stole $1.4 billion shocked the cryptocurrency world and is one of the biggest thefts in the history of crypto. The attack on Bybit’s Ether multisig cold wallet has worried people about the industry’s security. During all the chaos, the cryptocurrency exchange eXch has been the target of claims that it handled hacker-stolen money. But eXch has vehemently denied any participation in laundering money for North Korea’s Lazarus Group, saying the allegations are false.
Company Denies Laundering Allegations
eXch immediately addressed the rumors in a post on the Bitcointalk forum on 23rd February. They said, “We are not laundering money for Lazarus/DPRK.” The exchange told users that their money was safe and that the Bybit event did not affect how it worked. eXch said that some of the stolen money did go through its platform, but it stressed that this was a one-time event that had nothing to do with the larger plan to launder money.
Analysts and Investigators Disagree on Blockchain
Even though eXch said what they did, some blockchain experts are still unsure. In a Telegram post on 22nd February, well-known on-chain detective ZachXBT said that eXch laundered $35 million from the Bybit hack. Security company SlowMist and ethical hacker Nick Bax also said that eXch had handled many ETH from wallets linked to the stolen funds. Bax says that in one day, eXch did about $30 million in business for North Korea’s Lazarus Group.
Response and Fund Recovery by Bybit
In the middle of the trouble, Bybit has been working hard to regain its stolen assets. In an update on 23rd February, the exchange said it had successfully blocked over $42 million in stolen funds worldwide. But Bybit hinted at resistance from each, saying that the exchange allegedly wouldn’t work with them fully.
Conclusion
The Bybit hack has shocked the crypto community and started heated arguments about who is responsible for what regarding security, rules, and duty. Even though eXch strongly denies having anything to do with laundering stolen money, detectives are still looking into its role. The situation is still fluid as Bybit and law officials work to find and recover stolen assets. With billions at stake, this case shows how badly the crypto business needs stricter security measures immediately.
