A collaborative effort between Tron, Tether, and TRM Labs has led to the freezing of over $9 million linked to the ByBit hack, according to a report from T3_FCU. These three crypto powerhouses have established a joint forensic initiative called the T3_FCU (Financial Crime Unit) to combat illicit activities on the blockchain.
Beyond the immediate recovery of stolen funds, this initiative highlights a growing trend of proactive security measures taken by blockchain networks and stablecoin issuers to protect the integrity of the digital asset space.
ByBit, a leading cryptocurrency exchange, suffered a record-breaking hack on February 21, resulting in the loss of over $1.4 billion in digital assets, primarily Ethereum (ETH).
The breach has been widely attributed to the notorious Lazarus Group, a North Korean hacking syndicate. The hackers exploited a vulnerability in ByBit’s cold wallet system during a routine transfer, injecting malicious code into the user interface. This allowed them to reroute 401,000 ETH to addresses under their control by disguising a fraudulent transaction as legitimate.
Alex DovbnyaDescribed as the largest crypto heist in history, the attack surpassed previous records and exposed vulnerabilities in centralized exchange security. However, ByBit CEO Ben Zhou assured customers that the exchange remains solvent, with over $20 billion in assets under management.
Recovery efforts still ongoing
In response to the attack, ByBit launched a bounty program called “Lazarus Bounty”, offering $140 million (10% of the stolen funds) to encourage blockchain investigators and independent bounty hunters to help track and recover the missing assets.
The stolen funds have been traced across thousands of wallets, with some converted to Bitcoin, while others have been laundered through exchanges and privacy mixers.
With the latest breakthrough in freezing $9 million from the hackers, the recovery efforts show promising signs, but much work remains to reclaim the full amount.
Vladislav Sopov
Dan Burgin