Massive $1.4 Billion Bybit Hack: North Korea’s Lazarus Group Behind the Attack

Massive $1.4 Billion Bybit Hack: 40,000 ETH Loan Repaid Following Record-Breaking Crypto Hack

Massive $1.4 Billion Bybit Hack – Crypto exchange Bybit successfully repaid a 40,000 Ether (ETH) loan borrowed from Bitget within three days, following a massive $1.4 billion hack that disrupted its operations on February 21. The attack, reportedly one of the largest in cryptocurrency history, is believed to have been orchestrated by North Korea’s Lazarus Group. Despite the attack, Bybit managed to replenish the stolen crypto assets and continue its operations without significant disruptions.

Bybit Borrowed 40,000 ETH to Handle Customer Withdrawals

In an effort to recover from the hack, Bybit borrowed 40,000 ETH (worth approximately $104 million) from Bitget. The loan was crucial to ensure that customers could still withdraw their funds as needed, and Bybit’s quick action helped prevent further panic among investors. According to Lookonchain data, Bybit was able to return the full 40,000 ETH on February 25, confirming its recovery efforts.

Investor Trust Restored with Loan Repayment

The loan repayment was verified by Gracy Chen, CEO of Bitget, who confirmed that the loan had been given without interest or collateral. Chen expressed confidence in Bybit’s recovery, saying, “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.”

Bybit’s recovery also included 446,870 ETH (approximately $1.23 billion), covering nearly 88% of the stolen funds. The exchange was able to stabilize its operations despite the uncertainty, with over $5 billion withdrawn by investors on February 22. According to proof-of-reserve auditor Hacken, Bybit’s reserves exceed its liabilities, and user funds are still fully backed.

Tracking the Hack’s Origins

Investigations have linked the hack to North Korea’s Lazarus Group, with investigator ZachXBT earning a 50,000 Arkham (ARKM) tokens reward for his findings. Analysts suspect the stolen funds may have been funneled through cryptocurrency mixing services, a method commonly used by Lazarus Group to hide transaction trails.

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.