Greece recovers part of funds stolen in Bybit hack as its first crypto asset seizure

Greek authorities carried out the country’s first-ever crypto seizure after tracing funds linked to the record-breaking $1.4 billion hack of crypto exchange Bybit earlier this year.

The Hellenic Anti-Money Laundering Authority issued a freezing order on a suspect wallet following a months-long investigation aided by blockchain analytics firm Chainalysis.

The operation targeted funds allegedly stolen in February’s Bybit breach, which has been widely attributed to North Korea’s Lazarus Group.

The Bybit hack, which ranks among the largest crypto exchange breaches in history, saw attackers exploit vulnerabilities in the platform’s private key management systems to drain roughly $1.4 billion worth of Ethereum (ETH).

The stolen funds were rapidly laundered through an intricate web of blockchain transactions designed to obscure their origins, making recovery efforts challenging for global authorities.

The Greek seizure marked a milestone for local law enforcement in digital crime prevention. It was made possible by the Authority’s strategic investment in Chainalysis Reactor in 2023, a blockchain tracing platform procured through regional partner Performance Technologies.

The local technology provider also provided analysts with training and operational support ahead of the case. Using Reactor, Greek investigators tracked suspicious crypto transactions that ultimately linked a suspect wallet to the original Bybit theft.

Officials then froze the assets, removing control from illicit actors and transferring the case to prosecuting authorities for further legal action.

Kyriakos Pierrakakis, Greece’s Minister of Economy and Finance, hailed the seizure as a demonstration of modern tools strengthening anti-financial crime efforts.

Analysts said the successful seizure underlines how blockchain’s public ledger can aid global law enforcement despite sophisticated laundering tactics employed by groups like Lazarus, which has targeted crypto exchanges worldwide to fund North Korea’s weapons programs.

Chainalysis described the case as proof that combining technology, training, and international cooperation can erode criminal anonymity and bolster trust in digital asset markets.

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