$1.5bn crypto hunt starts; BTC mining eases
ByBit launches an online hunt for $1.5bn in stolen crypto while BTC mining becomes easier. Learn how these updates affect the market.
Hunt for stolen $1.5bn crypto starts; BTC mining becomes easier
ByBit, a well-known crypto trading platform, has become a target of what may be the largest theft in history. The company is now looking to recover some of its funds by hiring online bounty hunters.
Key Takeaways
- A huge hunt is on for $1.5 billion in stolen crypto. To do so, ByBit employs the help of online bounty hunters and establishes a site to help with the hunt.
- Mining Bitcoin is now easier than before. Certain crypto firms are expected to reduce their mining power by shutting down equipment to save energy.
In early February 2025, hackers linked to North Korea's infamous Lazarus Group allegedly stole $1.46 billion (£1.1 billion) in crypto from ByBit. The criminals are trying to quickly convert their stolen assets through an online money laundering scheme.
To prevent this, ByBit is offering cash rewards to those who can help track down and stop these criminals from cashing out. ‘Join us on war against Lazarus’, ByBit’s CEO Ben Zhou said in an online post that included a link to a new site. The site offers rewards to anyone who can assist in recovering lost funds.
The stolen coins are kept in public crypto wallets that anyone, including Gamdom players, can check. This makes it possible to trace the funds as thieves break them into smaller parts and move them through different routes to hide where they came from.
ByBit’s new site features a live leaderboard that shows firms and people who have found some of the stolen coins. The bounty plan offers 5% of the total amount found to those who can convince a firm holding the funds to freeze them. It also gives 5% to the firms that act on this.
The site shows millions in rewards for skilled cryptocurrency hunters. ‘We have assigned a team dedicated to maintaining and updating this website. We will not stop until Lazarus or bad actors in the industry are eliminated’, Mr Zhou said.
The popular crypto firm Elliptic called it a ‘really positive innovation’. Tom Robinson from Elliptic noted that many skilled blockchain investigators might feel inspired to find the stolen funds and help retrieve them.
On the other hand, Louise Abbott, a crypto fraud expert at Keystone Law, mentioned that the theft could harm trust in an already unstable industry. She pointed out that if a hack of this size can happen at the second-largest exchange, it could easily occur again, alarming crypto users including some who play Bitcoin casino games.
Without central banks or regulators in crypto deals, victims of crime lack a clear source of help. This situation has forced ByBit to depend on other crypto firms to assist them. However, not all are willing to help.
ByBit's site is monitoring those crypto companies that do not reply to requests for aid. One exchange, known as eXch, seems to be unwilling to collaborate. Researchers from Elliptic noted that eXch is known for enabling users to trade crypto assets without revealing their identities.
In a blog post, Elliptic claimed that large sums of crypto assets, linked to crime and thefts by North Korea, have been laundered using their service. Current analysis shows that $75 million from the ByBit hack has been traced moving through eXch platform.
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Bitcoin mining becomes easier
Mining Bitcoin (BTC) has become easier recently due to a drop in the crypto market, though experts believe this trend may not last. On February 23, 2025, the network's difficulty dropped from over 114 trillion to 110.5 trillion.
This change follows a fall in BTC’s price, which fell below $83,000 for the first time since early November 2024. It is common for mining difficulty to decrease during bear markets.
As prices drop and interest weakens, some firms may reduce their mining power, shutting down equipment to save energy. This recent decline also aligns with a harsh winter in many areas of the US, which has raised energy costs.
‘Energy across the US is elevated due to winter conditions. There is more demand for energy which drives up the prices of mining operations’, Nick Hansen, CEO and co-founder of the Luxor mining pool, said.
When BTC mining becomes easier, this means more coins are on the market. This often attracts crypto hacks and frauds. While there are growing efforts to stop these illegal activities, crypto analysts urge investors to research and stay alert before investing.
