According to the on-chain detective ZachXBT on March 18, he was deeply aware of the serious problems of security vulnerabilities and hacker attacks in the crypto industry while helping to freeze the Bybit hacker funds. He said that almost 100% of the monthly transaction volume and fees of multiple "decentralized" protocols recently came from the North Korean hacker group DPRK, but these projects refused to take any responsibility.
In addition, centralized exchanges (CEX) are slow to respond, and it only takes a few minutes for hackers to launder money, while some CEXs take hours to take action. ZachXBT also criticized the KYT (transaction monitoring) system for its serious flaws and easy circumvention, while the KYC (identity verification) mechanism is more like a data leakage risk for ordinary users due to account leaks and internal personnel problems, but it is almost ineffective in preventing illegal capital flows. He pointed out that the North Korean hacker DPRK recently successfully laundered $1.4 billion, which fully exposed the loopholes in the compliance and security systems in the industry, and worried that the industry could only improve if the government enforced supervision.
