FBI: North Korea’s “TraderTraitor” Gang Behind $1.5B Bybit Hack

• FBI has indicted North Korea as being behind the recent Bybit crypto exchange hack.
• The agency referred to the malicious attack as “TraderTraitor.”
• Bitcoin struggles to recover after last weekend’s post-hack crypto market crash.

The Federal Bureau of Investigation (FBI) has indicted North Korea as culprits behind the Bybit crypto exchange hack. 

The agency released a public service announcement on Wednesday, February 26, referring to the malicious attack as “TraderTraitor.”

FBI: North Korea’s “TraderTraitor” Laundered Stolen Crypto

According to the FBI’s report, TradeTraitor swiftly converted some stolen assets to Bitcoin and other cryptocurrencies, sending them to thousands of wallet addresses across multiple blockchains. The top security outfit projects that the hacker aims to launder and eventually convert the stolen digital assets to fiat.

The FBI’s report illuminates the recent Bybit hack, which most analysts described as the biggest crypto exchange hack in history. The renowned exchange suffered an attack last Friday after a hacker gained control of an Ether wallet, stealing approximately $1.5 billion worth of digital assets by transferring them to an unidentified wallet.

Bybit Hack: Crypto’s Biggest Ever

Notably, the Bybit hack sent shockwaves across the cryptocurrency market, triggering significant selloffs across the top cryptocurrencies and injecting a palpable FUD into the market. The hack plunged the crypto community into heightened speculation, with many analysts suspecting the notorious North Korea-based Lazarus Group as being behind the malicious attack.

Related: Crypto Crash 2.0 Fears? Bybit Hack, Bitcoin Plunge Echo Terra/Luna Disaster

In the meantime, the FBI’s report has clarified who was behind the attack. However, identifying the culprits has yet to affect the market dynamics, as the crypto market remained under bearish pressure despite slight attempts at recovery.

Bitcoin Price Recovers Slightly After Hack-Induced Slump

Bitcoin traded for $85,926 at the time of writing after recovering from a deeper slump that saw its price tumble to $82,133 for the first time since the middle of November 2024. 

Related: Bybit Hack Won’t Derail Crypto Rebound: Analyst’s Top Coin Predictions

The flagship crypto declined by 17% following last weekend’s market crash. However, it is showing signs of recovery after gaining 3.32% in today’s early hours of trading.