The Anti-Money Laundering Authority has frozen a significant quantity of cryptocurrency traced to February’s staggering $1.5 billion hack of Bybit, one of the world’s largest crypto exchanges. The unprecedented seizure marks a major milestone in the global fight against cyber-enabled financial crime.
The U.S. Federal Bureau of Investigation (FBI) underscored the case’s importance with a public alert confirming the freezing of transactions related to the massive theft, which it attributes to a sophisticated hacking group known as “TraderTraitor.”
Suspicious Transaction Sparks Breakthrough
The investigation began when the Anti-Money Laundering Authority received a tip about suspicious crypto activity involving a registered user at a Greek cryptocurrency exchange. During routine monitoring, analysts identified an unusually large inflow of Ethereum to the user’s wallet.
Specially trained investigators from the Authority analysed the transaction and confirmed the funds’ origin: a February 2025 crypto theft that saw Bybit lose approximately $1.5 billion worth of assets.
“This incident marks one of the largest crypto heists in recent years,” the Authority stated, emphasising the need for coordinated responses to transnational cybercrime.
From Bybit to TraderTraitor
According to the FBI, the Bybit breach has been linked to the hacking group TraderTraitor, a notorious operation with a history of targeting cryptocurrency exchanges and investors worldwide. Though specific details of how the hackers infiltrated Bybit’s security systems remain confidential, officials believe the attackers exploited vulnerabilities in the platform’s digital asset storage protocols.
The seized funds are now subject to a seizure order issued by the Anti-Money Laundering Authority, effectively freezing the assets and preventing their conversion or transfer to other accounts. The Authority has also prepared and submitted a detailed report to the competent Prosecutor’s Office, which will pursue further legal proceedings against those involved.
Building a Stronger Front Against Financial Crime
The case has brought renewed attention to the crucial role of the Anti-Money Laundering Authority in combating illicit financial flows, especially in the rapidly evolving world of digital assets.
Developed as part of a national strategy to improve financial transparency and counter organised financial crime, the Authority has been a key player in coordinating investigations that span multiple jurisdictions.
Officials credited the seizure to close collaboration between the Authority, the FBI, and other international law enforcement agencies, demonstrating the power of cross-border cooperation.
“The seizure shows that even as criminals adopt new technologies, authorities are enhancing their capabilities to trace, freeze, and recover stolen assets,” a spokesperson for the Anti-Money Laundering Authority said.
A Broader Push for Transparency
Supported by the Ministry of National Economy, the Authority is pursuing ongoing institutional upgrades to stay ahead of emerging financial threats. The institution’s strategy focuses on strengthening technological capabilities and ensuring independence to operate effectively in the complex world of cryptocurrency and digital finance.
This case also highlights the importance of regulatory oversight on crypto exchanges, especially regarding Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. Analysts point out that platforms operating without rigors KYC protocols can become conduits for laundering the proceeds of cybercrime.
The successful freeze of funds has reinforced calls for more consistent global standards on cryptocurrency oversight, an issue long debated by financial regulators worldwide.
Next Steps in the Investigation
Legal proceedings will now determine whether criminal charges will be filed against the wallet holder or others involved in moving the stolen funds. Prosecutors are expected to seek restitution and possible prison terms for those found complicit in laundering proceeds of the Bybit hack.
Meanwhile, the frozen assets will remain under the Authority’s control pending court decisions, providing hope for the potential recovery of stolen funds for Bybit and affected investors.
As the cryptocurrency industry continues to grow, this high-profile case sends a clear message to cybercriminals: even in the borderless world of blockchain, law enforcement agencies are prepared to act decisively to defend financial systems and hold perpetrators accountable.
