According to blockchain detective ZachXBT, during the process of assisting in freezing Bybit hacker funds, he deeply realized the serious security vulnerabilities and hacker attacks in the encryption industry. He stated that almost 100% of the monthly transaction volume and transaction fees for multiple "decentralized" protocols have recently come from the North Korean hacker group DPRK, but these projects refuse to take any responsibility.
In addition, centralized exchanges (CEX) have slow response times, with hacker money laundering taking only a few minutes, while some CEX require several hours to take action. ZachXBT also criticized that the KYT (Transaction Monitoring) system has serious flaws and is easy to evade, while the KYC (Identity Verification) mechanism is more like a data breach risk for ordinary users due to account leaks and internal personnel issues, but is almost ineffective in preventing illegal fund flows. He pointed out that the North Korean hacker DPRK recently successfully laundered $1.4 billion, fully exposing loopholes in the compliance and security systems within the industry, and expressed concern that the industry may only improve if the government enforces regulation.
