On-chain sleuth ZachXBT spent $349,700 undercover to identify Chinese money launderers linked to Lazarus and the $1.5B Bybit hack, enabling asset freezes.
Security & Exploits ·
On-chain investigator ZachXBT says he spent $349,700 undercover to infiltrate a network of alleged Chinese money launderers connected to the Lazarus Group and the $1.5 billion Bybit hack. Operating as a client, ZachXBT gathered intelligence on illicit fund flows that led to asset freezes and attribution of criminal activity on-chain.
The investigation focused on tracing stolen cryptocurrency through an organized crime syndicate. By posing as a prospective customer, ZachXBT documented how the network processed proceeds from the Bybit exploit alongside other compromised funds, creating a record suitable for law enforcement action and platform intervention.
What remains unclear is whether additional suspects or money flows tied to this operation remain active, and the extent to which recovered assets may ultimately be returned to affected users or protocols.