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Bybit has managed to recover nearly half of its Ether (ETH) reserves following a massive $1.4 billion hack that rattled the global Web3 industry. According to CryptoQuant data, Bybit now holds over 201,600 ETH, representing approximately 45% of the 439,000 ETH it had before the February 21 attack.
Bybit’s Rapid Response and Recovery Efforts
The February 21 exploit targeted liquid-staked Ether (stETH), Mantle Staked ETH (mETH), and other ERC-20 tokens, making it the largest cryptocurrency theft in history. Within just two days, Bybit replenished nearly half of its lost reserves through strategic asset purchases and emergency assistance from major crypto exchanges.
Spot buying played a crucial role in Bybit’s recovery, with the exchange acquiring 106,498 ETH worth $295 million via over-the-counter (OTC) trades, as reported by blockchain analytics platform Lookonchain. Additionally, the exchange received emergency transfers amounting to 145,000 ETH ($390 million) from industry leaders, including Binance (50,000 ETH), Bitget (40,000 ETH), and HTX Group’s co-founder Du Jun (10,000 ETH).
Update: #Bybit bought another 34,743 $ETH($97.7M) via #OTC ~40 mins ago.#Bybit appears to have bought a total of 106,498 $ETH($295M) via #OTC in the past 24 hours.https://t.co/s6a5TCfvwP pic.twitter.com/JjoaPJ6Xl0
— Lookonchain (@lookonchain) February 23, 2025
User Trust and Exchange Stability
Despite the staggering loss, Bybit continued operations without major disruptions, a feat that bolstered user trust. The exchange successfully processed over 350,000 withdrawal requests within 10 hours post-hack, completing 99.9% of them by February 22, as per CEO Ben Zhou’s statement.
Since the hack (10 hrs ago) , Bybit has experienced the most number of withdraws that we have ever seen, We have had a total number of more than 350k withdraws requests, so far, around 2100 withdraw requests left to be processed. Overall 99. 994% withdraws have been completed. If…
— Ben Zhou (@benbybit) February 22, 2025
While Bybit’s total assets saw a significant $5.3 billion decline post-exploit, including the stolen $1.4 billion, the exchange’s proof-of-reserve (PoR) audit confirmed that user funds remain fully backed. Independent auditor Hacken stated that Bybit’s reserves still exceed its liabilities, reinforcing confidence among investors.
The Hunt for the Hackers
Blockchain security experts, including Arkham Intelligence and onchain analyst ZachXBT, have linked the attack to North Korea’s Lazarus Group. The hackers reportedly exploited Bybit’s Ethereum multisig cold wallet by deploying a deceptive transaction that manipulated signers into approving malicious smart contract logic.
As investigations continue, Bybit’s swift action and industry-wide support highlight resilience in the face of one of the most significant cyber heists in crypto history.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
