TechFlame News: Cryptocurrency thefts reached $3.4 billion in 2025, with the Bybit attack accounting for $1.5 billion—44% of the annual total. In the first half of 2026, 212 related incidents occurred, resulting in losses of approximately $1.1 billion, with Lazarus-affiliated groups linked to about 55% of them. The KelpDAO attack in April saw losses of $293 million. Stolen funds typically go through a three-phase transfer process lasting roughly 45 days: in the first five days, funds are swapped via DeFi protocols and routed into mixing services, then bridged across chains and passed through exchanges with lower KYC requirements, and finally, between days 20 and 45, cashed out in batches through no-KYC platforms, instant exchangers, and OTC networks. Once funds span multiple blockchains, mixing services, and jurisdictions, tracking remains possible, but recovery becomes significantly harder. The recovery rate for Bybit's stolen funds ultimately came in below 5%. Tether and Circle can freeze USDT and USDC addresses, which is why attackers typically convert stablecoins into Ethereum or Bitcoin within minutes of an attack.