Bybit Recovers $1.46 Billion from Hacker Attack, Plans to Release Proof of Reserves
Cryptocurrency exchange Bybit has successfully mitigated its $1.46 billion loss resulting from a recent hacking incident through a strategic combination of loans, significant deposits from large investors, and the purchase of Ethereum (ETH). This information has been confirmed by blockchain analytics firm Lookonchain.
On February 24, Lookonchain reported that Bybit received a substantial influx of 157,660 ETH, equating to approximately $437.8 million, from a single address, likely through over-the-counter transactions. In addition, another entity deposited 109,033 ETH, valued at about $304.1 million, acquired from both centralized and decentralized exchanges.
The recovery effort included contributions of over $127 million in ETH classified as loans from various “whales” and institutional backers. Notably, crypto exchange Bitget lent 40,000 ETH, which is worth around $106 million. MEXC contributed 12,653 stETH, approximately $33.9 million, while an additional 22,609 ETH, valued at about $61.9 million, was transferred from another address likely involved in over-the-counter buying.
Other significant contributions included 20,000 ETH from an unknown source ($53.7 million), 10,000 ETH from Mirana Ventures ($28 million), and similar amounts from an address linked to Fenbushi Capital. Smaller amounts were also received from entities connected to a user identified as “@yuchao” (2,499 ETH) and DWF Labs (2,200 ETH).
Following the revelations from Lookonchain, Bybit’s CEO Ben Zhou took to X to announce that the exchange has successfully “fully closed the ETH gap.” He mentioned that a new, audited proof-of-reserves report will be released shortly to confirm that Bybit has restored its client assets to a 100% 1:1 ratio using a Merkle tree system.
On blockchain investigations, expert ZachXBT uncovered direct on-chain connections between the Bybit breach and a recent hacking incident involving Phemex. Analysis indicates that the perpetrators of both attacks merged funds using the same initial theft addresses, reminiscent of strategies employed by the North Korean-linked Lazarus Group in previous exchange hacks.
In a decisive move following one of the largest hacks in cryptocurrency history, Bybit reportedly purchased a total of $742 million in Ethereum as part of its recovery efforts. This significant acquisition appears to have prompted a 6% rebound in ETH prices compared to the previous week’s decline.
According to Lookonchain, the total amount of ETH received by Bybit reached 446,870 ETH, which is approximately $1.23 billion, sourced from various avenues including loans, major investor deposits, and direct purchases. To reinforce user trust, Bybit is preparing to unveil an audited proof-of-reserves report that will substantiate the secure backing of all client assets at a 1:1 ratio, promoting transparency and security within the exchange.
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