There’s been an update on how the Lazarus Group hackers that robbed Bybit of $1.5 billion attempted to launder the stolen funds through Solana’s PumpFun platform
According to crypto analyst Atlas in a Feb 23 tweet, they sent 60 SOL to an anonymous wallet, and launched a memecoin called QinShihuang (#500000) to mask their activities.
After manipulating lots and trading and wash trading, the hackers were able to generate over $42 million in artificial volume, which made it harder to trace the stolen assets.
They attracted some real readers to the memecoin, combining legitimate transactions with their dirty money in order to launder their proceeds even further
“The hackers created hype around their token, luring in traders looking for quick profits,” Atlas reported.
After they moved a large amount of money, the hackers divided the funds into several wallets and used cross-chain bridges to transfer assets between different blockchains so that it becomes even more difficult to follow.
However, blockchain investigator Zachxbt exposed the laundering scheme, linking the movement of funds to the PumpFun exploit.
This situation highlights the ongoing issues in the Defi space. Atlas warned that hackers wouldn’t stop taking advantage of open systems and that DeFi platforms need to update their monitoring tools to locate suspicious transactions.
“If you don’t recognize these schemes, you might unknowingly trade on exploited liquidity or hold worthless scam tokens,” he cautioned.
Despite the attack, Bybit has reassured its users that all funds remain backed 1:1 and the exchange is keeping withdrawals and trading active.
The exchange has also responded by launching LazarusBounty.com today. The platform is aimed to track and stop the Lazarus Group which is a cybercrime organization linked to North Korea. The platform will reward bounty hunters who help expose and freeze stolen crypto assets.
“We have assigned a team to dedicate to maintain and updating this website, we will not stop until Lazarus or bad actors in the industry are eliminated. In the future we will open it up to other victims of Lazarus as well” Bybit’s CEO Ben Zhou stated
Also Read: Safe Wallet to Resume Services in 24 Hours After ByBit Hack
