A staggering US$1.5 billion Ethereum heist from the Bybit platform, allegedly orchestrated by North Korean hackers, has set a new benchmark in the world of cryptocurrency theft. The incident underscores the persistent threat posed by cybercriminals who target digital assets through sophisticated hacking techniques.
Rising Trend in Crypto Thefts
Despite blockchain technology’s promise of secure transactions, cryptocurrency thefts have been escalating. According to blockchain analytics firm Chainalysis, an estimated US$2.2 billion worth of digital assets were stolen in 2024 alone. This marked the fourth consecutive year where global cryptocurrency thefts exceeded US$1 billion.
Chainalysis highlighted the role of North Korean hackers, noting that they were responsible for approximately 60% of last year’s stolen crypto assets. “Hackers from North Korea have become notorious for their sophisticated and relentless tradecraft,” the report stated.
Methods of Attack
Cybercriminals primarily target cryptocurrency trading platforms and digital wallets, where individuals store their assets. These attacks often involve exploiting security weaknesses or deceiving users into handing over access credentials.
“If you deposit money on a major platform, you’re entrusting them with managing security for that cryptocurrency,” said Mounir Laggoune, head of crypto wealth management and investment platform Finary. However, even the most secure platforms remain vulnerable to cyberattacks.
The most common method of crypto theft involves attackers compromising users’ private keys—unique codes granting access to digital wallets. Chainalysis reported that private key breaches accounted for nearly 43% of stolen funds last year. Cybercriminals use phishing, malware, and other hacking techniques to obtain these keys before draining the victims’ wallets.
Is Blockchain Truly Secure?
Blockchain technology, introduced in the late 2000s, is often praised for its security and immutability. Each transaction is recorded in a decentralized ledger, making it nearly impossible to alter or erase transaction history. This distributed nature is intended to deter fraud and unauthorized modifications.
However, while attacking the blockchain itself is difficult, it is not impossible. A notable example occurred in 2019 when cybercriminals manipulated the blockchain of platform Gate.io, siphoning off US$200,000. Such attacks require control over the majority of the blockchain network, making them rare but not unheard of.
The Challenge of Tracking Stolen Crypto
One of blockchain’s defining features is its traceability. Since all transactions are publicly recorded, tracing stolen funds should, in theory, be straightforward. However, criminals employ sophisticated techniques to obscure their tracks.
One of the most effective tools for laundering stolen cryptocurrency is the use of “mixers.” According to the United Nations Office on Drugs and Crime (UNODC), mixers blend identifiable cryptocurrency funds with other transactions, effectively obscuring their origins.
“Once crypto assets have been passed through a mixer, it is almost impossible to connect the funds to their original source,” the UNODC states. This tactic enables criminals to cash out stolen assets while avoiding detection by law enforcement.
The Ongoing Battle Against Crypto Crime
The Bybit hack serves as a stark reminder of the vulnerabilities within the cryptocurrency ecosystem. As digital assets continue to gain mainstream acceptance, regulators and security experts face mounting pressure to develop robust safeguards against cyber threats. For now, investors are urged to exercise caution and employ stringent security measures to protect their holdings.
