- Crypto investigator ZachXBT exposed that Vultisig’s claimed $200,000 revenue partially came from North Korean Hackers laundering stolen Bybit funds.
- THORChain founder and Vultisig CEO John-Paul Thorbjornsen defended the transactions as “legitimate” despite their connection to the $1.4 billion Bybit hack.
- Bybit CEO reports that 89% of the stolen funds remain traceable, with hackers converting approximately $1.23 billion ETH into Bitcoin across thousands of wallets.
Cryptocurrency wallet provider Vultisig faces scrutiny after security researcher ZachXBT revealed the firm’s recently celebrated $200,000 revenue included transactions linked to North Korean hackers laundering funds stolen from the Bybit exchange.
The controversy began when THORChain founder John-Paul Thorbjornsen announced the revenue milestone for his multi-chain wallet company Vultisig. Security researcher ZachXBT quickly responded with evidence suggesting a significant portion of those funds originated from hackers associated with North Korea‘s government.
“JP I hope you realize a good chunk of that revenue is being generated from the Bybit hack. DPRK has been doing BTC -> BNB or AVAX TC swaps via Vultisig for the past few days in size,” ZachXBT stated, providing screenshots showing Bitcoin transactions between $50,000 and $200,000 being processed through Vultisig’s platform.
When contacted about these allegations, Thorbjornsen defended the activity, telling Protos: “They are legitimate transactions. Anyone who can sign a transaction can broadcast on-chain and pay a fee for inclusion. Ethereum and Bitcoin nodes have already accepted those transactions and made fees.”
The transactions appear connected to the massive $1.4 billion theft from cryptocurrency exchange Bybit, which security experts have attributed to North Korea‘s Lazarus Hacking group. ZachXBT has been actively assisting Bybit in tracking these stolen funds.
Bybit CEO Ben Zhou provided an update on the recovery efforts, reporting that approximately 89% of the stolen assets remain traceable. According to Zhou, about 440,091 ETH (roughly $1.23 billion) has been converted into 12,836 BTC and distributed across more than 9,000 different wallets. He noted that hackers have begun employing cryptocurrency mixers to obscure the trail of stolen funds.
The FBI previously confirmed that the North Korean hacking collective known as “TraderTraitor” was responsible for the $1.5 billion Bybit security breach, representing one of the largest cryptocurrency thefts in history.
This incident highlights growing concerns about how decentralized finance platforms may inadvertently facilitate money laundering operations, even while operating within the technical parameters of blockchain networks.
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