Bybit has fully replenished its Ethereum reserves after the massive $1.4 billion hack on February 21, marking one of the largest crypto heists in history. CEO Ben Zhou confirmed that the exchange has “closed the ETH gap” and will soon publish a new proof-of-reserve report to verify that client funds remain at a 1:1 ratio.

Massive ETH Replenishment and Market Impact

Following the attack, blockchain analytics firm Lookonchain reported that Bybit obtained 446,870 ETH—worth around $1.23 billion—through a mix of loans, whale deposits, and direct purchases. This covered nearly 88% of the stolen amount. Key acquisitions included 157,660 ETH ($437.8 million) from investment firms Galaxy Digital, FalconX, and Wintermute via over-the-counter (OTC) trades, along with an additional $304 million in ETH purchases through centralized and decentralized exchanges.

The hack triggered $5.3 billion in withdrawals from Bybit on February 22, reflecting widespread concern among users. However, an audit by Hacken confirmed that Bybit’s total reserves continue to exceed liabilities, ensuring that user funds remain fully backed. Data from DeFiLlama shows that Bybit currently holds approximately $10.9 billion in total assets.

Despite the crisis, Bybit received overwhelming support from the crypto industry. Major firms, including Bitget, Galaxy Digital, FalconX, MEXC, and Tether, extended assistance, with Bitget being the first to loan Ether to the exchange. CEO Ben Zhou expressed gratitude for the industry's solidarity, stating, "With this level of unity in this space, we know we’ll come back even stronger."

The North Korea-linked Lazarus Group, known for previous crypto heists, was identified as the attacker. In response, several exchanges, including Crypto.com, stepped in to assist Bybit’s security team in tracking stolen funds. Bitget also blacklisted wallets associated with the hackers to prevent further movement of stolen assets.

The attack initially caused Ether’s price to drop over 7%, from $2,831 to $2,629, but it has since recovered to $2,765, according to CoinGecko data.

Bybit’s handling of the attack has been widely praised as a masterclass in crisis management, demonstrating resilience, transparency, and swift action. While the exchange faced an unprecedented challenge, its ability to secure new funds and maintain stability showcases strong leadership in the crypto space.

Bybit Suffers $1.5 Billion Hack: The Largest Crypto Heist in History | HODL FM
Bybit suffers a record $1.5B hack; Lazarus Group suspected.
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