Bybit Hack Fallout: 100K ETH Returned, But 33K ETH Still Unpaid as Laundering Speeds Up

• Bybit returned 100K ETH post-hack, but 33K ETH is still pending, while laundering accelerates, with 135K ETH already moved.
• Hackers, likely linked to Lazarus Group, still hold 363,900 ETH ($900M), rapidly laundering funds in just 8-10 days instead of a month.
• Grayscale’s ETF plan aims to integrate ETH staking, allowing institutional investors exposure while maintaining regulatory compliance.

Bybit exchange returned 100,000 ETH to partners who assisted during the attack. However, around 33,000 ETH is still pending repayment. Meanwhile, Bybit purchased 212,101 ETH worth $574 million via OTC transactions over the last three days.

The attack, linked to North Korea’s Lazarus Group, has led to major fund laundering activities. According to renowned blockchain investigator Yujin, commonly known as EmberCN, the criminals laundered 45,900 ETH over the course of the previous day.

This raises the total amount laundered to $335 million, or 135,000 ETH. Hence, this represents approximately 27% of the stolen funds. The hackers still possess 363,900 ETH, equivalent to $900 million.

Accelerated Laundering Process

The rate of fund conversion has accelerated. Initially, Yujin estimated the laundering process would take up to a month. However, due to rapid transactions, the timeframe has been shortened to 8-10 days. This indicates an aggressive effort to convert stolen ETH before further intervention.

Authorities are monitoring the movement of these assets. The increased pace suggests a well-coordinated operation. Additionally, the use of advanced laundering techniques is making fund recovery difficult. Crypto analysts warn that this trend may impact the broader market, as large sums of ETH are moved rapidly.

Grayscale’s Ethereum Staking Proposal

Besides the Bybit hack developments, another major update has emerged in the Ethereum space. The SEC acknowledged and published NYSE Arca’s filing, detailing Grayscale’s proposal to allow Ethereum ETFs to earn staking rewards. This rule change, submitted on February 14 and published on February 25, aims to integrate staking into Grayscale’s Ethereum Trust ETFs while maintaining security measures.

According to the filing, the Trust may stake a portion of its Ethereum holdings through trusted providers. These providers could include its custodian or affiliates but not Grayscale itself. Moreover, Grayscale’s staking model differs from delegated staking services that faced regulatory scrutiny.

Due to this development, institutional investors could gain exposure to staking rewards without direct involvement. Consequently, this move could enhance Ethereum’s credibility in the financial sector.