Bybit co-founder and CEO Ben Zhou has announced the launch of Lazarus Bounty, an initiative aimed at tracking and freezing funds linked to the North Korean hacker group Lazarus after its $1.5B attack on the exchange company.
Notably, the Lazarus bounty platform introduces a transparent and community-driven approach to combating cryptocurrency-related money laundering.
For context, the bounty program allows users to connect their wallets and participate in tracing illicit funds. If a submitted bounty leads to asset freezing, participants receive an instant reward.
Meanwhile, exchanges, mixers, and other entities involved in freezing these assets will receive 5% of the recovered funds.
A Transparent Approach to Crypto Security
Lazarus Bounty provides a live ranking system categorizing industry participants based on their responsiveness to sanctioned transactions. Entities that fail to act against illicit activities risk being flagged as facilitators of money laundering.
Additionally, a live API wallet address update feature integrates with blockchain analytics firms such as Chainalysis, Arkham, Elliptic, and TRM Labs, ensuring real-time tracking and monitoring of illicit transactions, according to Zhou.
Future Developments and Expansion
Bybit has committed dedicated resources to maintaining and updating the platform. Future updates will include:
- Live tracking of sanctioned wallets, allowing bounty hunters to monitor and claim rewards for tracing illicit fund movements.
- Regulatory tools to support authorities in identifying and mitigating financial crimes.
- Expansion to other victims, enabling affected parties to report and recover lost funds.
“We will not stop until Lazarus and bad actors in the industry are eliminated,” Zhou stated.
Industry Collaboration and Implications
The initiative underscores growing industry efforts to combat illicit finance in cryptocurrency. Bybit’s move aligns with increasing regulatory scrutiny and industry calls for greater transparency in digital asset transactions.
The launch of Lazarus Bounty marks a shift toward proactive security measures, empowering both the crypto community and regulatory bodies in preventing financial crime.
