- Bybit has successfully recovered from a $1.4 billion Ethereum theft through multiple funding channels and purchases.
- The exchange acquired 446,870 ETH through loans, whale deposits, and direct purchases from firms like Galaxy Digital and FalconX.
- North Korean Lazarus Group exploited Bybit’s Ethereum cold wallet, leading to $5.3 billion in user withdrawals.
- Industry partners helped freeze $42.89 million of stolen funds, while Hackers converted some assets to Bitcoin.
- Bybit CEO confirms full recovery and promises new proof-of-reserves report showing 1:1 backing of client assets.
Bybit, one of the largest cryptocurrency exchanges, has restored its reserves following a devastating $1.4 billion Ethereum hack, marking a significant recovery in what was initially considered one of the largest cryptocurrency thefts in history. CEO Ben Zhou confirmed the exchange has “fully closed the ETH gap.”
According to blockchain analytics platform Lookonchain, the exchange executed a series of strategic moves to acquire 446,870 ETH, valued at approximately $1.23 billion. The purchases were conducted through multiple channels, including over-the-counter (OTC) transactions with major crypto firms Galaxy Digital, FalconX, and Wintermute.
The recovery effort involved two main wallets: one purchasing 157,660 ETH ($437 million) and another acquiring 304,000 ETH through various exchanges including Binance and MEXC.
The original breach, attributed to North Korea‘s Lazarus Group, triggered massive user withdrawals totaling $5.3 billion within 24 hours. The hackers employed sophisticated techniques to obscure their tracks, converting stolen funds through multiple decentralized exchanges and privacy protocols.
Blockchain intelligence firm Elliptic reported that over $140 million of the stolen assets were converted to Bitcoin, complicating recovery efforts. However, industry collaboration proved crucial, with Tether, Circle, and THORChain successfully freezing $42.89 million of compromised funds.
Zhou announced that a new proof-of-reserves report using Merkle tree verification – a cryptographic method ensuring data integrity – will soon demonstrate the exchange’s complete restoration of client assets at a 1:1 ratio.
Current market data from CoinGecko shows Ethereum trading at $2,707, while DeFiLlama reports Bybit’s total assets at $10.81 billion, indicating the exchange’s stability despite the recent security breach.
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