In the wake of one of the largest cryptocurrency heists in history, Bybit CEO Ben Zhou has assured the crypto community that his exchange has fully replenished the stolen $1.4 billion worth of Ether. The announcement, shared via a post on X on February 24, comes as the platform prepares to release an updated proof-of-reserve report. This forthcoming report, audited through a Merkle tree structure, will confirm that Bybit’s client funds are once again fully backed at a 1:1 ratio.
The security breach, attributed to the North Korean-backed hacking group Lazarus, had shaken the ecosystem on February 21, leaving a temporary gap in Bybit’s reserves. However, reports from blockchain analytics firm Lookonchain reveal that the exchange acted swiftly to repair the damage. Data indicates that Bybit acquired approximately 446,870 Ether, a sum valued at around $1.23 billion, contributing nearly 88% of the total stolen assets.
Aggressive Purchase Strategy to Restore Reserves
Bybit’s approach to replenishing its reserves involved a combination of loans, large-scale whale deposits, and strategic purchases. The analytics firm Lookonchain uncovered that a wallet address linked to Bybit, identified as “0x2E45…1b77,” executed substantial over-the-counter acquisitions. These transactions involved major crypto investment firms such as Galaxy Digital, FalconX, and Wintermute, securing 157,660 ETH at an estimated value of $437.8 million.
Further analysis pointed to another wallet, “0xd7CF…A995,” which reportedly facilitated additional ETH purchases worth $304 million through a mix of centralized and decentralized exchanges. Arkham Intelligence supported these findings, noting wallet activity with major platforms such as Binance and MEXC.
Transactions fueling these acquisitions were traced to multiple wallet addresses, meticulously structured to restore Bybit’s asset holdings. According to blockchain records, the first significant purchase associated with the wallet “0x2E45…1b77” occurred on February 22 at 4:44 PM UTC. This outlined a methodical effort by Bybit to stabilize its position following the record-breaking breach.
Market Impact and Bybit’s Liquidity Standing
The massive hack, which now stands as the most significant cryptocurrency theft in history, accounted for more than 60% of the total stolen digital assets in 2024. The revelation prompted an understandable market reaction, with Ether’s price plunging over 7% within seven hours following the incident, briefly falling from $2,831 to $2,629. However, signs of recovery emerged as ETH managed to climb back to $2,765, as per CoinGecko data.
Despite the shocking exodus of funds, which also catalyzed Bybit’s customer withdrawals surpassing $5.3 billion on February 22, an assessment by proof-of-reserve auditor Hacken reassured the market. The audit confirmed that Bybit’s overall reserves remained solvent, exceeding liabilities, ensuring that user funds continued to be fully collateralized.
Currently, data from DeFiLlama places Bybit’s total asset holdings at approximately $10.9 billion, reflecting the exchange’s ability to swiftly mitigate the crisis. These rapid corrective measures underscore Bybit’s resilience, reinforcing its standing in the crypto trading landscape despite enduring one of the most severe cyber attacks in the industry’s history.
