In a historic breakthrough for European crypto law enforcement, Greece has successfully executed its first cryptocurrency asset seizure, tracing stolen funds from the infamous $1.5 billion Bybit hack earlier this year. The operation, confirmed on 9 July, was led by the Hellenic Anti-Money Laundering Authority (HAML) and powered by Chainalysis Reactor, a blockchain investigation tool hailed as a game-changer in forensic tracing.
The funds were linked to North Korea’s state-sponsored hacking unit, Lazarus Group, long known for its complex laundering methods and billion-dollar exploits. But this time, their tactics met a formidable opponent in Greece’s newly equipped digital crime division.
Chainalysis Reactor: Turning Transactions into Trails
The Greek operation began when analysts detected a suspicious transaction using Chainalysis Reactor, a forensic platform capable of following even heavily obfuscated crypto trails. Acquired in 2023 and implemented with the help of local partner Performance Technologies, Reactor enabled authorities to stitch together transaction data across more than 25 blockchains.
Despite Lazarus Group’s use of bridge swaps, decentralised exchanges, and privacy tools, the HAML team was able to directly connect a flagged wallet to the original Bybit exploit. Within hours, authorities issued an emergency “Freezing Order” immediately locking down the wallet and its contents, preventing further movement of illicit funds.
Chainalysis stated, “This successful blockchain trace enabled the Authority to issue a Freezing Order, effectively removing criminal proceeds from illicit actors’ control.”
From Digital Clues to Legal Action
This high-stakes investigation represents more than just a technological victory, it signals a major shift in crypto crime enforcement. What was once a borderless playground for hackers is now becoming increasingly trackable and legally actionable.
Once the wallet was frozen, the case was swiftly escalated to Greek prosecutors. Analysts noted that the seamless collaboration between forensic technology and legal enforcement transforms what would previously be an invisible theft into a prosecutable offence.
Greek Finance Minister Kyriakos Pierrakakis
Greek Finance Minister Kyriakos Pierrakakis praised the operation, calling it a “blueprint for modern financial defence,” adding that the case sets a precedent for future investigations involving crypto assets.
Lazarus Group Faces Unprecedented Setback
The seizure strikes a direct blow to Lazarus Group, a cybercrime syndicate believed to have stolen more than $5 billion in digital assets since 2017. Their typical approach includes splitting stolen funds across multiple wallets, using automated tools to rapidly swap assets across blockchains, and leveraging decentralised services to blur the trail.
However, this time, their strategies failed to shield them. The Greek team’s ability to pinpoint a wallet through these layers of obfuscation has exposed a growing weakness in the Lazarus playbook, the global adoption of advanced blockchain intelligence tools by governments.
The incident echoes successful models like the FBI’s crypto crime task forces, demonstrating how international infrastructure, when paired with local enforcement, can achieve results once thought impossible in the decentralised world.
A New Era in Crypto Crime-Fighting
Greece’s first crypto seizure marks a pivotal moment not just for the country, but for global crypto enforcement. It shows that even highly sophisticated cybercriminals can be tracked, traced, and stopped when the right tools and collaboration are in place.
For crypto investors and institutions, this case is a reminder of how regulatory evolution is catching up with digital finance. For malicious actors like Lazarus Group, it’s a warning: the age of blockchain anonymity is closing fast and governments are no longer just watching.
