Largest theft in history: most of the loot exchanged for Bitcoin

Most of the loot from the largest crypto theft and theft ever has now been exchanged for Bitcoin, with around 10 percent no longer traceable. This was reported by TechCrunch, citing two blockchain analysis companies. The crypto exchange Bybit has compiled similar figures on a dedicated page; its digital money was stolen. The first stage of money laundering showed an “unprecedented level of operational efficiency”, TechCrunch quotes an expert in blockchain analysis. The procedure indicates that the suspected backers in North Korea have expanded their infrastructure or received help from criminals in China. However, they are still a long way from reaching their goal.

More money laundering needed

The case involves a total of 1.4 billion US dollars in cryptocurrency, which was stolen from Bybit just a week and a half ago. This was not only the biggest crypto theft by far, but probably also the biggest theft in history. Because the path of the loot can be traced on the underlying blockchain, the process of money laundering can be tracked. According to independent observers quoted by TechCrunch, 10 percent has already been lost in the process, including as a fee for services used to exchange it for Bitcoin. That would be around 140 million US dollars.

Bybit itself has called on the industry to help in the attempt to recover the loot and has offered a reward of 10 percent for each tranche secured. In total, just over 3 percent of the loot has been frozen, according to the site set up specifically to track the loot. That is just over 40 million US dollars. There is no information on the whereabouts of a further 95 million US dollars. A good 90 percent of the loot can therefore still be traced, and here too it is stated that it was mostly exchanged for Bitcoin.

Bitcoin price collapse

The experts quoted by TechCrunch assume that it will now become increasingly difficult to trace the path of the loot. Next, their origin is likely to be disguised with the help of so-called mixers, which would make tracking extremely difficult. At the same time, these services only have the capacity to handle a few million US dollars per day, which should slow down further money laundering. However, at least some of it will still flow through services where it can be frozen. All that is needed is for providers to realize quickly enough that they are dealing with stolen goods.

The billion-dollar coup became known on February 21 and was made public by the CEO of Bybit himself. The thieves, who were based in North Korea, had probably managed to deceive the crypto exchange during a routine transaction so that the funds, mainly in the form of the cryptocurrency Ethereum, were sent to an unknown address instead of the company's own wallet. The FBI has now also located those responsible in North Korea. Following the theft, the price of Bitcoin also fell noticeably, and a temporary recovery has already ended.

(mho)