Anatomy of a High-Stakes Operation
Zhou urged the community to help decode mixer transactions, calling it the “number one challenge” in recovering stolen funds. Blockchain forensics firm Elliptic linked the Bybit hack to the Lazarus Group, a notorious North Korean hacking syndicate that may have used the theft to fund Pyongyang’s nuclear program.
Arkham Analytics tracked 12.9 BTC from the stolen funds to an unknown address on March 20, further emphasizing the complexity of tracing stolen crypto after it’s been laundered through multiple layers.
From Pandemic Boom to Institutional Challenge
Crypto-based money laundering surged in 2022, reaching $31.5 billion — nearly double 2021’s $18.3 billion and triple the 2019 average. Though this figure declined to $22.2 billion in 2023, it still dwarfs pre-2021 levels. Chainalysis data shows that even with a 15% drop in total crypto volume, laundering operations remain stubbornly high.
The criminal use of crypto has remained steady at around $50 billion annually since 2022, indicating a plateau rather than a decline. Experts suggest the ecosystem has become more diverse and professional, with hackers deploying a blend of mixers, decentralized exchanges, and off-ramp services.
Crypto’s Civil Liberties Battle Over Privacy Tools
While prosecutors aim to hold developers of privacy tools accountable, the crypto community continues to argue that building open-source, privacy-focused tools is not inherently criminal. Prominent cases like Tornado Cash’s Roman Storm and Samourai Wallet’s founders have sparked intense debates about technological neutrality and legal overreach.
Crypto lawyer Marta Belcher drew a powerful analogy: “We don’t blame Ford when a car is used in a bank robbery.” Still, in 2025, courts are leaning toward penalizing developers, with Samourai Wallet’s founders facing up to 25 years in prison.
How Much Illicit Money Moves Through Crypto?
Evasion Tactics Evolve With Regulation