Bybit Recovers $1.4 Billion in Stolen Ether After Major Hack
Bybit Recovers– Bybit CEO, Ben Zhou, has confirmed that his cryptocurrency exchange has successfully replenished the $1.4 billion worth of Ether that was stolen during a February 21 hack.
In a post on February 24, Zhou announced that a new audited proof-of-reserve report will soon be available, showing that Bybit’s client assets are now fully backed at a 1:1 ratio using a Merkle tree structure. This news comes after blockchain analytics firm Lookonchain estimated that Bybit received 446,870 Ether, valued at approximately $1.23 billion, from loans, whale deposits, and purchases. This amount represents nearly 88% of the $1.4 billion stolen by the Lazarus Group, a North Korean-backed hacker organization.
Lookonchain also discovered that a wallet associated with Bybit, identified as “0x2E45…1b77,” had purchased 157,660 Ether, valued at $437.8 million, from crypto investment firms like Galaxy Digital, FalconX, and Wintermute through over-the-counter (OTC) transactions. Another $304 million in Ether was bought via wallet address “0xd7CF…A995” from centralized and decentralized exchanges, which is also likely tied to Bybit, according to Arkham Intelligence.
The hack, which is the largest in crypto history, resulted in the theft of more than 60% of all stolen crypto funds in 2024. Despite the attack, Bybit’s reserves remain strong. Proof-of-reserve auditor Hacken has confirmed that Bybit’s reserves still exceed its liabilities and that user funds are fully backed.
Bybit’s total assets are currently valued at $10.9 billion, according to DefiLlama data. After the hack, Ether briefly fell by over 7%, dropping from $2,831 to $2,629, but has since recovered to $2,765.
This event highlights the resilience of Bybit as it restores the stolen funds and maintains trust in the platform’s security.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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