Bybit Fully Covers Massive Hack Losses
Bybit CEO Ben Zhou announced that the exchange has fully replaced the $1.4 billion in Ether (ETH) stolen in the February 21 Lazarus Group hack. A new audited proof-of-reserves report will soon be released to verify that client assets remain at a 1:1 ratio, using a Merkle tree system for transparency.
The $1.4 billion hack is the largest crypto theft in history, accounting for over 60% of all stolen crypto in 2024.
How Bybit Refilled the ETH Gap
According to blockchain analytics firm Lookonchain, Bybit replenished 446,870 ETH ($1.23B) through:
✅ Loans
✅ Whale deposits
✅ Direct ETH purchases
Lookonchain’s findings indicate:
- 157,660 ETH ($437.8M) was purchased over-the-counter (OTC) from Galaxy Digital, FalconX, and Wintermute via the wallet “0x2E45…1b77”.
- Another $304M in ETH was acquired via centralized and decentralized exchanges, linked to wallet “0xd7CF…A995”.
Arkham Intelligence confirmed that Bybit-affiliated wallets interacted with Binance and MEXC hot wallets during these transactions.
Bybit Withstands $5.3B in Withdrawals
Despite the security breach, Bybit maintained liquidity, processing $5.3 billion in customer withdrawals on February 22.
According to Proof-of-Reserve auditor Hacken, Bybit’s reserves still exceed its liabilities, ensuring full backing of user funds.
Bybit’s total assets currently stand at $10.9 billion, per DefiLlama data.
ETH Price Reaction
Following the hack, ETH fell 7% within seven hours, dropping from $2,831 to $2,629. However, it has since recovered to $2,765, according to CoinGecko.
