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Bybit unveils bounty platform to tackle crypto crime following massive Lazarus hack

Bybit announced a bounty platform designed to combat crypto-related crime titled LazarusBounty.com following.

The initiative employs a structured, four-pronged approach to identifying illicit activity, holding hackers accountable, and enhancing crypto security.

The effort follows a hack perpetrated against Bybit on Feb. 21, which resulted in the loss of nearly $1.5 billion in Ethereum (ETH) and ETH synthetic tokens. According to blockchain security firm Elliptic, this is the largest hack in history.

War against Lazarus

LazarusBounty.com consolidates blockchain security data from leading firms, including Chainalysis, Arkham, and GoPlus, into a unified security repository. This real-time database provides investigators and the broader community with critical insights to detect, analyze, and counteract illicit activities.

LazarusBounty.com mobilizes blockchain forensic specialists, such as ZachXBT and Yu Xian of SlowMist, to conduct in-depth investigations when significant breaches occur.

These experts have forensic tools and methodologies to trace stolen funds, identify attackers, and coordinate responses with law enforcement and affected platforms. The initiative is a proactive deterrent against cybercrime, strengthening the industry’s ability to respond to security threats.

Bybit CEO Ben Zhou said:

“In today’s blockchain landscape, transparency isn’t just a principle — it’s our most potent weapon against cybercrime. With LazarusBounty.com, we are taking a stand to ensure that every transaction is visible and every hacker is held accountable. Our multifive-pronged offensive is a clear message: if you steal, you will be found, and justice will be swift.”

Moreover, LazarusBounty.com has a bounty leaderboard that tracks and rewards contributions based on the effectiveness of efforts to recover stolen funds. The site catalogs verified intelligence, recognizing security researchers and ethical hackers who help unmask cybercriminals.

An automated notification system enhances response times by immediately alerting exchanges and platforms to freeze illicitly obtained funds before they can be laundered.

Bybit has also assembled a security advisory board comprising chief security officers from major blockchain networks. This decentralized council collaborates to enhance security protocols, share intelligence, and reinforce protective measures across the crypto ecosystem.

Tracking the funds

According to on-chain data highlighted by Arkham, the funds extracted in the Bybit hack are being swapped for Bitcoin (BTC) and DAI via the multichain protocol Thorchain and the OKX Web3 Swap feature. So far, the hackers swapped $6.2 million to BTC.

Blockchain analytics platform SpotOnChain also noted that roughly $250 million has already been laundered.

Due to the structure of the attack and the subsequent laundering process, analysts suspect that the North Korean Lazarus Group is behind the Bybit hack.

Elliptic highlighted that Lazarus uses various layering tactics, including sending funds through numerous crypto wallets, using cross-chain bridges to transfer assets across blockchains, converting assets via decentralized exchanges or swap services, and leveraging mixers like Tornado Cash.

These techniques are intended to buy time for launderers before attempting to cash out the illicit funds. Lazarus seems to be currently performing the third step, using multichain solutions to layer funds.

The post Bybit unveils bounty platform to tackle crypto crime following massive Lazarus hack appeared first on CryptoSlate.

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