Bybit recently experienced a significant security breach resulting in the loss of approximately $1.4 billion. The hack involved over 500,000 ETH being stolen and dispersed using mixing services. A concerted effort to trace the funds is underway.

CEO Ben Zhou confirmed the conversion of 86.29% of the stolen ETH into Bitcoin through thousands of wallets. Cross-chain protocols and more than one cryptocurrency mixer were reportedly utilized in the process.

The latest market data shows Ethereum trading at $2,880, with fluctuations mirroring historical volatility patterns in reaction to hacks. Bybit’s offer of bounties is seen as an effort to stabilize the situation and recover assets.

Experts predict significant financial and regulatory reactions moving forward. Using mixers complicates recovery efforts, though collaboration with exchanges may help trace and potentially stop further dispersion of the stolen assets.

Previous incidents similar to the Bybit hack have shaken the cryptocurrency market. Notable breaches, such as in 2019, show a pattern of market price dips and recovery following such events.

Experts highlight the need for robust security measures to prevent future breaches. They emphasize on-chain intelligence and AI-driven models as effective tools in identifying irregular patterns and potentially freezing stolen cryptocurrencies.

Deddy Lavid, Co-founder and CEO, Cyvers: “While laundering through mixers and cross-chain swaps complicates recovery, cybersecurity firms leveraging on-chain intelligence, AI-driven models, and collaboration with exchanges and regulators still have small opportunities to trace and potentially freeze assets.”