- Bybit replenished $1.4 billion in stolen ETH after a historic cyberattack, reaffirming its financial stability.
- Blockchain analysis shows that $1.23 billion was recovered through loans, OTC deals, whale deposits, and exchange purchases.
- Despite the hack, the exchange maintains $10.9 billion in total assets, reinforcing investor confidence.
Bybit CEO Ben Zhou announced that the cryptocurrency exchange has fully replenished the staggering $1.4 billion worth of Ether (ETH) stolen in a sophisticated cyberattack on Feb. 21. The recovery underscores Bybit’s commitment to financial stability and security in an industry frequently targeted by hackers.
In a Feb. 24 post on X (formerly Twitter), Zhou revealed that a new audited proof-of-reserves report will soon be published, providing transparency on Bybit’s client assets. The report will utilize a Merkle tree structure, ensuring that user funds are backed 1:1, a crucial step in reassuring investors and the broader crypto community.
Bybit’s $1.23B Recovery After Historic Hack
Blockchain analytics firm Lookonchain has traced significant transactions that indicate Bybit’s rapid efforts to recover from the historic heist. According to Lookonchain’s analysis, the exchange received 446,870 ETH, approximately $1.23 billion through loans, whale deposits, and direct purchases. This amount accounts for nearly 88% of the stolen funds attributed to the North Korean state-sponsored hacker group Lazarus.
Further breakdowns from Lookonchain highlight that Bybit-linked wallet address “0x2E45…1b77” acquired 157,660 ETH (valued at $437.8 million) via over-the-counter (OTC) purchases from major crypto investment firms, including Galaxy Digital, FalconX, and Wintermute.
Another wallet, identified as “0xd7CF…A995,” reportedly facilitated additional purchases worth $304 million across centralized and decentralized exchanges. Data from Arkham Intelligence indicates this wallet interacted with Binance and MEXC hot wallets, reinforcing that these transactions were part of Bybit’s replenishment strategy.
The $1.4 billion hack is the most significant theft in cryptocurrency history, accounting for over 60% of all stolen digital assets in 2024. The breach triggered massive withdrawals, with the exchange customers collectively pulling out $5.3 billion by Feb. 22. Despite this, proof-of-reserve auditor Hacken confirmed that exchange’s reserves still exceed its liabilities, maintaining full backing of user funds.
Bybit Holds Strong at $10.9B Despite Hack
According to DefiLlama, Bybit’s total assets currently sit at $10.9 billion, reinforcing the platform’s financial resilience. However, the hack initially sent shockwaves through the market, with Ether plunging over 7% in just seven hours from $2,831 to $2,629. Since then, ETH has shown signs of recovery, trading at around $2,700, per CoinGecko data.
The exchange’s swift action to replace lost funds and its forthcoming proof-of-reserve report could be a benchmark for how exchanges handle security breaches. While the incident underscores the persistent threat of cyberattacks in crypto, it also highlights the growing emphasis on transparency and fund security in the sector.
As Bybit moves forward, the industry will closely watch to see how this high-profile recovery shapes security protocols and regulatory discussions. The incident has reignited debates on exchange security measures, emphasizing the need for robust fund protection mechanisms in the ever-evolving digital asset landscape.
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