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CryptoPotato • October 6th 2026, 10:33 AM

How ZachXBT Infiltrated a Crypto Laundering Network Handling Bybit and Other Stolen Funds

Key Summary

ZachXBT infiltrated a Chinese organized crime syndicate laundering over $1 billion in stolen funds from Bybit and other exploits, including the $1.5 billion Bybit exploit attributed to the DPRK-linked group TraderTraitor. The investigation revealed a complex network of transactions and accounts used to launder funds across multiple cryptocurrencies.

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Key Takeaways

  • ZachXBT infiltrated a Chinese organized crime syndicate laundering over $1 billion in stolen funds from Bybit and other exploits.
  • The investigation revealed a complex network of transactions and accounts used to launder funds across multiple cryptocurrencies.
  • ZachXBT lost 5% on each order and fronted $349,700 USDC during the investigation.

Market & Token Impact

  • The findings from this case were immediately shared with trusted investigators in the private sector and law enforcement assigned to the case.
  • The investigation highlights the complexity and sophistication of modern crypto laundering operations.
  • The use of Uniswap liquidity pools and illiquid tokens in laundering methods is a concerning trend in the crypto space.

Broader Context & What's Next

  • The case highlights the need for increased cooperation and coordination between law enforcement agencies and the private sector to combat crypto laundering.
  • The investigation demonstrates the importance of onchain sleuths like ZachXBT in exposing and disrupting crypto laundering operations.
  • As the crypto space continues to evolve, it is essential to stay vigilant and adapt to new laundering methods and techniques.

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