USDC
+0.0%
USDT
+0.0%ZachXBT spent $349,700 undercover to trace Bybit hack laundering ring
Image: Crypto BriefingPseudonymous blockchain investigator ZachXBT fronted $349,700 USDC for an undercover operation targeting a Chinese organized crime group alleged to launder funds for North Korea's Lazarus Group. The operation launched in late February 2025, roughly a week after the $1.5 billion Bybit exchange hack. His work helped identify a wallet cluster tied to over $12 million in Bybit-linked funds, leading to a 442,000 USDT freeze. He shared his findings with law enforcement and private investigators during the active operation.
Key points
- ZachXBT fronted $349,700 USDC to infiltrate an alleged Chinese crypto laundering ring
- The ring is alleged to launder funds for North Korea's Lazarus Group
- The undercover operation launched shortly after the $1.5 billion Bybit exchange hack in February 2025
- His work identified a wallet cluster holding more than $12 million in Bybit-linked funds
- Solana addresses provided by his contact helped track cross-chain movements of stolen Bybit funds
Why it matters
The operation highlights the personal and operational risks investigators face when infiltrating illicit laundering networks, and shows stablecoin freezes remain a key tool for disrupting North Korea-linked crypto theft proceeds.
What's unclear
The start date of ZachXBT's undercover operation is reported as both late February 2025 and March 6 2025
It is unclear if the 442,000 USDT freeze is included in Tether's reported $19 million in total Bybit-related freezes
Price context · USDC
At publication
$1.0000
Now
$1.0000
Change since
+0.00%
7 days · dashed line = publication
Sources · 3 publishers
Crypto Briefing
Tier 2
ZachXBT fronted $349,700 to get inside an alleged Lazarus laundering ring
Blockonomi
Tier 3
ZachXBT Went Undercover With $349,700 to Follow Stolen Bybit Crypto
Coverage timeline
- First reported by The Defiant
- Confirmed by Crypto Briefing
- CryptoVideos brief published
How this brief was made. Our system found this event in 3 independent publications, summarised two complete reports with AI and checked every number above against the source text. Sources are linked in full. Not financial advice. Report an error
