Cryptocurrency exchange Bybit announced Tuesday it will close its non-fungible token (NFT) marketplace on April 8 as the company refocuses on its core trading services.

The decision comes after a February security breach that cost the company $1.46 billion in stolen digital assets, which is believed to be the biggest known heist of all time.

Bybit has instructed users to transfer their NFTs to external wallets before the closure date to avoid potential losses.

The move comes during a broader cooling of the NFT market, with trading volumes declining significantly across major platforms in recent months.

However, many in the crypto industry are still bullish on NFTs.

Canary Capital filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a new NFT-focused exchange-traded fund (ETF) in late March.

The ETF would invest directly in Pudgy Penguins NFTs and PENGU, the project’s utility token, and it would also hold other crypto assets, like Ethereum (ETH) and Solana (SOL), that “are necessary or incidental to the purchase, sale and transfer” of those tokens, per the filing.

In December, Raoul Pal said that NFTs might flourish due to fiat currency debasement and the growing popularity of digital assets among younger generations.

Despite the NFT marketplace closure, Bybit reaffirmed its commitment to blockchain technology advancement, promising enhanced security protocols following the February breach.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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THORChain, a decentralized protocol enabling users to swap cryptocurrencies across various blockchains, has seen what can be described as an unwanted windfall after the Bybit hack.

The protocol processed $4.66 billion in swaps in the week ended March 2, the highest tally on record, according to data source DefiLlama. The tally exceeded the $1 billion mark on Sunday alone.

The surge in activity follows the hack of the crypto exchange Bybit on Feb. 22, which saw the North Korean malicious entity walk away with $1.4 billion in ether. Per observers, the entity used THORChain to swap and launder funds, resulting in a record activity on the platform.

“Starting from the initial Bybit Exploiter wallet, funds were sent across a further stretching net of wallets. With each ‘hop’ further from the main wallet, there was an increasing amount of intermediary wallets and the value transfers became smaller and smaller,” blockchain analytics firm Nansen said in a report shared with CoinDesk.

“From hop 2, the hacker started interacting with third-party entities to start swapping and laundering the funds. Entities with the most inflow volume from the hack include THORChain, Paraswap, Mantle, OK DEX and DODO,” Nansen added.

CoinDesk reached out to THORChain for a comment on the matter.

Per onchain analyst EmberCN, hackers have laundered the entire ETH balance in ten days, generating record revenue for THORChain.

“Hackers have laundered all 499,000 ETH ($1.39 billion) stolen from Bybit, a process that took 10 days. The ETH price has fallen by 23% in the process (from $2,780 to $2,130 today). THORChain, the main channel used by hackers to launder money, also earned $5.9 billion in transaction volume and $5.5 million in handling fees due to hackers’ money laundering,” EmberCN said on X.

The hacker behind the $1.4 billion Bybit exploit has already laundered more than 50% of the stolen Ethereum, primarily using THORChain to swap ETH for Bitcoin.

According to blockchain analytics firm Spot On Chain’s Feb. 28 post on X, the attacker has laundered 266,309 Ethereum (ETH), about $614 million, in the past 5 days at an average rate of 48,420 ETH per day. If this pace continues, the remaining 233,086 ETH could be fully laundered within another five days.