FBI Blames North Korea for $1.4B Bybit Crypto Heist

The FBI officially accused the North Korean government on Wednesday of executing the massive $1.4 billion Ethereum heist targeting cryptocurrency exchange Bybit.

Meet ‘TraderTraitor’: The Group Behind the Attack

In a newly released public advisory, federal investigators formally attributed the devastating cyberattack to “TraderTraitor,” a notorious state-sponsored hacking collective operating under Pyongyang’s direction.

How the Hackers Are Moving the Funds

According to federal authorities, the cybercriminals are working rapidly to obfuscate the paper trail. The FBI warned that TraderTraitor actors have already begun converting the stolen Ethereum into Bitcoin and various other virtual currencies, dispersing the funds across thousands of distinct blockchain addresses. Intelligence agencies expect the group to further launder these digital assets before ultimately converting them into traditional fiat currency.

Inside the $1.4 Billion Crypto Heist

The breach occurred on February 21, when Bybit disclosed it had fallen victim to a sophisticated exploit. During the attack, hackers managed to drain 401,346 Ethereum, valued at approximately $1.4 billion at the time of the theft. While independent cybersecurity firms and blockchain researchers quickly pointed the finger at North Korean state actors, the FBI’s announcement provides official confirmation. In response to the breach, Bybit has launched an unprecedented $140 million bounty program to incentivize researchers and investigators who can help trace and freeze the stolen assets.