ZachXBT Infiltrates Crypto Syndicate Tied to $1.5B Bybit Hack

Key Takeaways

• ZachXBT went undercover in a Chinese syndicate that laundered over $1B in crypto for the Lazarus Group.
• He fronted $350K of his own money to gain trust, tracking funds from Bybit’s $1.5B hack in 2025.
• The intel gathered helped freeze $75M in stolen funds, including 442,000 USDT frozen by Tether.

ZachXBT Reveals Chinese Money Laundering Collective Infiltration

ZachXBT, one of the most renowned blockchain sleuths, revealed that he infiltrated a Chinese crypto money laundering group in 2025.

The infiltration began in February, shortly after Bybit was hacked by a group called TraderTraitor, which siphoned over $1.5 billion in crypto assets from the exchange wallets. ZachXBT identified several users in public Discord and Telegram groups asking for support for orders directly linked to stolen funds from Bybit, in the same way that threat actors linked to the receiver Bitget hack are now openly creating support tickets for orders in public groups.

Posing as a customer, ZachXBT funded an address with nearly $350K USDC, intending to make transactions and gain the trust of Jimmy Green, an account tied to Bybit hack funds.

After several exchanges, ZachXBT established a bond with Green. The individual started sharing more intelligence, announcing that the group would process funds from the Bybit hack before it happened, and also shared more details of their operations.