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Investigator traces over $12 million of Bybit-linked funds after hack

The investigation by ZachXBT says it helped identify Bybit-linked laundering networks and contributed to Tether freezing 442,000 USDT.

Reported · Written up by our desk · Market Structure

North Korean hackers stole around $1.5 billion from Bybit in February 2025, according to CryptoSlate, but attention has mostly focused on the theft rather than what happened to the proceeds afterward.

CryptoSlate reports that blockchain investigator ZachXBT said he infiltrated a Chinese laundering network by committing 349,700 USDC and accepting a 5% loss on each completed order. The outlet says the effort helped him trace more than $12 million in Bybit-linked funds.

The outlet also writes that, according to ZachXBT’s account, his investigation contributed to Tether freezing 442,000 USDT. CryptoSlate further says the investigation pointed to a broader network involved in laundering more than $1 billion in crypto theft proceeds linked to the Lazarus Group.

CryptoSlate adds that the broader implications extend to the criminal financial services market, which US authorities have been trying to disrupt, and notes that in September the US Treasury sanctioned some entities connected to this activity.

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