Bybit has fully restored its Ethereum (ETH) reserves after a devastating $1.5 billion hack on February 21, according to CEO Ben Zhou.
Notably, the exchange plans to release an audited proof-of-reserve (PoR) report to confirm that client assets are once again held at a 1:1 ratio using a Merkle tree verification system.
Bybit: Nearly $1.23 Billion in ETH Recovered Post-Hack
Blockchain analytics firm Lookonchain reported that Bybit received approximately 446,870 ETH—valued at $1.23 billion—through a combination of loans, whale deposits, and direct purchases.
Interestingly, this represents nearly 88% of the stolen funds linked to the North Korean state-backed hacker group Lazarus.
According to Lookonchain, one wallet linked to Bybit, “0x2E45…1b77,” acquired 157,660 ETH (worth $437.8 million) from major crypto investment firms via over-the-counter (OTC) trades.
Additionally, another address, “0xd7CF…A995,” was found to have purchased 109,033 ETH ($304 million) through centralized and decentralized exchanges. Notedly, these were the 2 largest ETH transfers to Bybit post-hack.
Strategic Moves to Restore Reserves
Notably, Bybit moved swiftly to bridge the deficit through multiple funding sources:
- OTC Purchases: The exchange engaged in private trades with institutional players.
- Loans and Deposits: Contributions from unknown whales and crypto firms supplemented the ETH recovery.
- Exchange Transactions: Significant purchases were made via Binance, MEXC, and other trading platforms.
For context, the stolen funds accounted for over 60% of all crypto thefts in 2024, making it one of the most significant security breaches in the industry’s history. Following the hack, Bybit saw a surge in customer withdrawals, exceeding $5.3 billion on February 22.
Bybit CEO: Proof-of-Reserves Audit Incoming
Despite the large outflows, Bybit’s reserves remain sufficient, according to Ben Zhou, Bybit CEO. The upcoming proof-of-reserve report will provide transparency into the exchange’s solvency and ensure that client assets remain fully backed.
Zhou reiterated Bybit’s commitment to security and customer protection, stating, “Bybit has already fully closed the ETH gap. A new audited PoR report will be published very soon to show that Bybit is again back to 100% 1:1 on client assets through a Merkle tree.“
The crypto industry continues to grapple with security challenges, but Bybit’s swift response underscores the importance of financial resilience and transparency in the wake of cyberattacks.
