Tron, Tether, TRM Labs Freeze $9M in ByBit Hack Funds Amid Global Crypto Crackdown

In a significant breakthrough, Tron, Tether, and TRM Labs have successfully frozen over $9 million linked to the historic ByBit hack, according to blockchain watchdog T3_FCU (Financial Crime Unit). This joint forensic initiative was formed to combat illicit activity in the crypto space, marking a proactive step by blockchain networks and stablecoin issuers in safeguarding digital assets.

The ByBit hack, which occurred on February 21, 2025, resulted in a staggering $1.4 billion loss—primarily in Ethereum (ETH)—making it the largest crypto heist to date. The attack has been widely attributed to the Lazarus Group, a North Korean cybercrime syndicate notorious for targeting financial platforms. Exploiting a vulnerability in ByBit’s cold wallet system during a routine transfer, the hackers injected malicious code into the interface, rerouting 401,000 ETH via a sophisticated phishing exploit.

Despite the scale of the breach, ByBit CEO Ben Zhou reassured users that the platform remains financially secure, managing over $20 billion in assets. In response, the exchange launched the “Lazarus Bounty” program, offering $140 million—10% of the stolen funds—to incentivize blockchain investigators and white-hat hackers to aid in recovery efforts.

The stolen crypto has since been traced through thousands of wallets, with some funds converted to Bitcoin or laundered through privacy mixers. The freezing of $9 million is a promising milestone in a broader push for digital asset transparency and enforcement.

This case underscores a growing trend: crypto leaders are uniting to fortify the blockchain ecosystem against criminal threats, signaling a new era of accountability and collaborative cybersecurity in Web3.