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ZachXBT says it traced Lazarus-linked laundering via Bybit funds

The investigator alleges his actions led to tracing more than $12 million tied to Bybit and a 442,000 USDT freeze by Tether.

Reported · Written up by our desk · Market Structure

Blockchain investigator ZachXBT said he infiltrated a Chinese laundering syndicate by posing as a cryptocurrency client and funding repeated stablecoin trades, according to an Oct. 5 disclosure.

ZachXBT alleged the network laundered more than $1 billion across exploits connected to the Lazarus Group, including claims that repeated exchanges prompted private conversations about moving funds stolen from Bybit in 2025.

He said he fronted 349,700 USDC under the alias Jimmy Green to build a relationship with a contact, and reported tracing a cluster involving more than $12 million in Bybit funds.

ZachXBT also said the investigation began after the February 2025 Bybit exploit, when he noticed at least 15 accounts seeking help with orders tied to stolen funds in public Telegram and Discord groups, and he cited a later 442,000 USDT freeze by Tether.

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