Hackers responsible for stealing approximately $1.4 billion in cryptocurrency, including 500,000 ETH, are increasingly using mixers to obscure transaction trails, according to a new executive report from Bybit’s CEO, Ben Zhou. Investigators report that 88.87% of the stolen funds remain traceable, while 7.59% have disappeared into untraceable transactions, and 3.54% have been frozen.
Stolen Funds Flow Into Bitcoin and Mixers
A significant portion—86.29% of the stolen Ethereum—has been converted into 12,836 Bitcoin across more than 9,000 wallets, averaging 1.41 BTC per wallet. Investigations reveal that hackers have begun shifting their laundering methods, favoring Bitcoin mixing services such as Wasabi, CryptoMixer, Railgun, and Tornado Cash.
At least 193 BTC have already passed through Wasabi’s mixing service before being redistributed to various peer-to-peer vendors. Experts believe this trend will accelerate as criminals seek to further obfuscate stolen assets.
Growing Challenges in Tracking Laundered Funds
Investigators highlight the increasing difficulty of tracing funds through mixers, calling it their top challenge. While a portion of the stolen assets remains trackable, funds passing through certain mixing services are becoming nearly impossible to recover.
Over the past month, authorities received 5,012 bounty reports related to illicit transactions, of which only 63 were considered valid. Officials emphasize the need for more specialists in blockchain analysis to counter the rising use of mixers in money laundering schemes.
Authorities urge cybersecurity experts and bounty hunters to assist in decoding these transactions as hackers refine their techniques. With digital asset laundering methods evolving rapidly, financial watchdogs stress the importance of stronger regulatory oversight and forensic advancements to curb the growing trend.
