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‘Bad Bitcoin take’ — Crypto community reacts to Michael Saylor’s kidney-selling advice

Saylor`s extreme investment advice highlights the need for responsible communication in the volatile crypto market. The post ‘Bad Bitcoin take’ — Crypto community reacts to Michael Saylor’s kidney-selling advice appeared first on Crypto Briefing . CoinDesk

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Urgent Crypto Alert: Bybit Hacker’s Audacious $614M Ethereum Laundering Spree Unveiled

In a shocking turn of events that has sent ripples through the cryptocurrency world, the hacker responsible for the massive Bybit hack is moving stolen funds at an alarming pace. Just one week after the cyber heist, over half of the pilfered Ethereum (ETH) has already been laundered, raising serious concerns about crypto exchange security and the sophistication of modern-day digital criminals. Let’s dive into the details of this brazen act and what it means for the future of crypto safety. What Happened in the Bybit Hack? Unveiling the Crypto Heist On February 26th, the U.S. Federal Bureau of Investigation (FBI) dropped a bombshell, pointing fingers at North Korea for orchestrating a staggering $1.5 billion virtual asset theft from the crypto exchange Bybit around February 21st. This revelation came hot on the heels of blockchain analytics firm Spot On Chain’s report highlighting the rapid movement of stolen funds. According to their analysis on X, the hacker has successfully laundered a significant chunk of the Ethereum stolen in the attack. Here’s a breakdown of the key figures: Total Ethereum Stolen: 499,000 ETH Ethereum Laundered in One Week: 266,309 ETH Value of Laundered Ethereum: $614 million Percentage of Total Stolen Funds Laundered: 53.3% Average Daily Laundering Rate: 48,420 ETH These numbers are staggering. To put it into perspective, imagine over half a billion dollars worth of cryptocurrency vanishing into the digital ether in just seven days! This incident underscores the immense scale of cyber threats facing the crypto industry and the urgent need for robust security measures. Ethereum Stolen: Why ETH and How Was it Moved? Why Ethereum? ETH, being the second-largest cryptocurrency by market capitalization and widely used in decentralized finance (DeFi), is a highly liquid and sought-after asset. This makes it a prime target for hackers looking to steal and subsequently launder large sums. The Ethereum stolen from Bybit was primarily processed through THORChain exchanges, a decentralized cross-chain liquidity protocol. THORChain acts as a bridge, enabling users to swap assets across different blockchains without relying on centralized intermediaries. In this case, the hacker utilized THORChain to convert the stolen ETH into Bitcoin (BTC). This cross-chain swapping is a common tactic in crypto laundering because it obfuscates the trail of funds and makes it harder for authorities to track the stolen assets back to their origin. Here’s a simplified view of the laundering process: Theft: Hackers breach Bybit and steal 499,000 ETH. Initial Movement: Stolen ETH is likely moved through various intermediary wallets to further obscure its origin. THORChain Exchange: Large amounts of ETH are deposited into THORChain. Conversion to Bitcoin: ETH is swapped for Bitcoin (BTC) through THORChain’s decentralized exchange. Further Laundering: The Bitcoin is likely moved through mixers, tumblers, or other privacy-enhancing services to further break the transaction trail and make it virtually untraceable. The speed at which this crypto laundering operation is being conducted is particularly alarming. At a daily average of 48,420 ETH laundered, Spot On Chain estimates that the remaining 233,086 ETH could be cleared within the next five days. This rapid pace suggests a highly organized and sophisticated operation, further pointing towards state-sponsored actors as speculated by the FBI. THORChain Under Scrutiny: Is Decentralization a Double-Edged Sword? The use of THORChain in this crypto laundering incident raises important questions about the role of decentralized exchanges (DEXs) in facilitating illicit activities. While decentralization offers numerous benefits, including censorship resistance and greater user control, it can also be exploited by malicious actors seeking to bypass traditional regulatory frameworks. Is THORChain to blame? Not directly. THORChain, as a protocol, is designed to facilitate cross-chain swaps, and like any tool, it can be used for both legitimate and illegitimate purposes. However, this incident might prompt increased scrutiny of DEXs and cross-chain protocols, potentially leading to discussions about implementing measures to mitigate their use in money laundering without compromising their core principles of decentralization and privacy. North Korea Crypto Theft: The Shadowy Suspect Behind the Bybit Breach The FBI’s accusation that North Korea crypto theft is behind the Bybit hack adds a geopolitical dimension to this already complex situation. North Korea has been increasingly implicated in cybercrime and cryptocurrency theft as a means to circumvent international sanctions and fund its regime. If these allegations are true, the Bybit hack would represent a significant financial coup for North Korea, further bolstering its illicit activities. It also highlights the growing nexus between state-sponsored cybercrime and the cryptocurrency ecosystem. Nations like North Korea are likely attracted to crypto due to its pseudo-anonymous nature and the relative ease with which large sums can be moved across borders, evading traditional financial surveillance systems. Can Crypto Exchanges Prevent Future Hacks? Actionable Insights for Enhanced Security The Bybit hack serves as a stark reminder that even major cryptocurrency exchanges are not immune to sophisticated cyberattacks. So, what can be done to prevent similar incidents in the future? Here are some actionable insights for crypto exchanges and users alike: Enhanced Security Protocols: Exchanges need to continuously upgrade their security infrastructure, employing multi-layered security measures, including robust firewalls, intrusion detection systems, and regular security audits conducted by reputable third-party firms. Advanced Threat Intelligence: Proactive threat intelligence gathering and analysis are crucial. Exchanges should invest in tools and expertise to identify and mitigate emerging cyber threats before they can be exploited. Multi-Signature Wallets: Implementing multi-signature wallets for holding customer funds can significantly enhance security. This requires multiple private keys to authorize transactions, making it much harder for a single hacker to gain control. Cold Storage Solutions: A significant portion of cryptocurrency assets should be held in cold storage – offline wallets that are not connected to the internet. This drastically reduces the attack surface and protects funds from online threats. User Education: Educating users about phishing scams, social engineering attacks, and best security practices is paramount. Many breaches originate from user-side vulnerabilities. Regulatory Collaboration: Increased collaboration between crypto exchanges and regulatory bodies is essential. Sharing threat intelligence and working together to establish industry-wide security standards can strengthen the overall crypto ecosystem. For crypto users, the Bybit hack underscores the importance of: Diversification: Not keeping all your crypto assets on a single exchange. Hardware Wallets: Utilizing hardware wallets for long-term storage of cryptocurrencies. Vigilance: Being cautious about suspicious links, emails, and requests for personal information. The Road Ahead for Crypto Security The Bybit hack and the subsequent rapid crypto laundering operation represent a serious challenge to the cryptocurrency industry. It highlights the ever-present threat of sophisticated cyberattacks and the ingenuity of malicious actors in exploiting vulnerabilities. While decentralization offers numerous benefits, it also presents unique security challenges that need to be addressed proactively. The industry must double down on security, enhance collaboration, and work towards establishing robust defenses to safeguard user funds and maintain trust in the digital asset space. The speed and scale of this incident serve as a wake-up call, demanding urgent and comprehensive action to secure the future of cryptocurrency. To learn more about the latest crypto security trends, explore our article on key developments shaping crypto exchange security and preventative measures. CoinDesk