Bybit, one of the leading cryptocurrency exchanges, has swiftly repaid the 40,000 Ether (ETH) loan it borrowed from rival exchange Bitget, just three days after suffering a massive $1.4 billion security breach. The repayment highlights Bybit’s resilience and commitment to maintaining investor confidence despite one of the largest crypto hacks in history.
Bybit’s Swift Recovery Amid Crisis
The February 21 exploit, reportedly linked to North Korea’s notorious Lazarus Group, saw Bybit losing a staggering $1.4 billion in assets. Despite the setback, the exchange moved quickly to restore its reserves and ensure uninterrupted operations. To facilitate customer withdrawals, Bybit borrowed 40,000 ETH (approximately $104 million) from Bitget on February 22, a move confirmed by blockchain analytics firm Lookonchain.
By February 25, on-chain data verified that Bybit had fully repaid the borrowed funds. Bitget CEO Gracy Chen confirmed the transaction, emphasizing that the loan was issued without interest or collateral, purely as an industry solidarity gesture.
“No interest, no collateral—this was simply about supporting a peer in need. Great to see Bybit fully recovered, and we never doubted the return of the loan,” Chen stated.
Rebuilding Trust and Liquidity
Bybit’s recovery efforts were extensive, amassing approximately 446,870 ETH (valued at $1.23 billion) through a mix of loans, whale deposits, and asset acquisitions. This replenishment covered nearly 88% of the stolen assets, allowing the exchange to continue operations without major disruptions.
Investor sentiment remained volatile, with over $5 billion withdrawn from Bybit on February 22 amid uncertainty. However, proof-of-reserve auditor Hacken confirmed that Bybit’s reserves still exceed its liabilities, ensuring user funds remain secure and fully backed.
Investigating the Hack
Crypto investigator ZachXBT linked the attack to the Lazarus Group, securing a 50,000 Arkham (ARKM) token bounty for his findings. Further analysis suggests ties between the Bybit exploit and previous attacks on BingX and Phemex, raising concerns about a broader hacking campaign.
Also Read: Bybit’s $1.4B Stolen Crypto Likely Headed to Mixers—But Will It Work This Time?
As investigations continue, analysts warn that the stolen funds may be laundered through cryptocurrency mixers, a common obfuscation tactic employed by Lazarus. Meanwhile, Bybit’s swift repayment and asset recovery efforts signal a robust commitment to security and transparency amid one of crypto’s biggest cyber heists.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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