The Federal Bureau of Investigation (FBI) has issued a stark warning to the Crypto Community, urging businesses and individuals to avoid handling funds linked to the recent Bybit exchange hack. The attack, which saw $1.5 billion stolen, has been attributed to the notorious North Korean hacker group Lazarus, also known as TraderTraitor.

The FBI’s alert, posted on Wednesday, highlights the rapid movement of stolen assets across multiple blockchains. The agency also provided a list of Ethereum wallet addresses associated with the hackers and advised crypto firms to block any transactions connected to them.

Stolen Funds Are Being Laundered at Alarming Speed

According to blockchain intelligence firm TRM Labs, approximately $400 million of the stolen funds have already been laundered. The firm noted the unprecedented speed at which Lazarus is dispersing the assets, making it challenging for authorities to track and freeze them.

“Beyond the sheer scale of the Bybit hack, the speed at which the stolen funds are being laundered is particularly alarming,” TRM Labs stated.

The hackers have been rapidly converting the stolen crypto into Bitcoin and other virtual assets, spreading them across thousands of wallet addresses to obfuscate their trail. The FBI believes the assets will eventually be cashed out through illicit channels.

Security Breach Originated from Developer Machine

On Wednesday, wallet service Safe confirmed that the hackers gained access by compromising a developer machine linked to a Safe {Wallet} account operated by Bybit. The company has since implemented additional security measures to prevent similar breaches.

Bybit CEO Ben Zhou has released a preliminary report on the attack, compiled by incident response firm Syngia and financial security company Verichains. While the full extent of the damage is still being assessed, the exchange is taking steps to strengthen its defenses.

Bybit Offers $140 Million in Bounties to Recover Funds

In an effort to recover the stolen assets, Bybit has announced a massive bounty program, offering up to $140 million in rewards for individuals or entities that can help freeze the stolen funds. So far, 12 “hunters” have been awarded a total of $4.2 million for their efforts.

Meanwhile, the FBI is urging crypto exchanges, decentralized finance (DeFi) platforms, and remote procedure call (RPC) node operators to block transactions linked to the identified hacker addresses. Authorities hope that by limiting the hackers’ ability to move funds, they can disrupt the laundering process.