Cryptocurrency exchange Bybit has successfully recovered from a $1.46 billion hacker attack using a mix of loans, whale deposits, and Ethereum (ETH) purchases, according to blockchain data from Lookonchain.
In an X post on February 24, Lookonchain revealed that Bybit received 157,660 ETH (approximately $437.8 million) from a single address, likely through over-the-counter (OTC) purchases. Another 109,033 ETH ($304.1 million) came from an entity that acquired ETH from both centralized and decentralized exchanges.
Whales and Institutional Support
Whale investors and institutions played a key role in Bybit’s recovery, contributing over $127 million in ETH as loans.
• Bitget provided 40,000 ETH ($106 million)
• MEXC contributed 12,653 stETH ($33.9 million)
• Another unidentified OTC buyer sent 22,609 ETH ($61.9 million)
• An unknown entity transferred 20,000 ETH ($53.7 million)
• Mirana Ventures sent 10,000 ETH ($28 million)
• Another 10,000 ETH came from an address potentially linked to Fenbushi Capital
• Smaller contributions were made by users associated with “@yuchao” (2,499 ETH) and DWF Labs (2,200 ETH)
Bybit CEO Ben Zhou’s Announcement
Following Lookonchain’s findings, Bybit CEO Ben Zhou confirmed on X that the exchange has “fully closed the ETH gap.” He assured users that a new audited proof-of-reserves report would be published soon, verifying that Bybit maintains 100% 1:1 client asset reserves through Merkle tree verification.
Connections to Other Exchange Hacks
Anonymous blockchain investigator ZachXBT found on-chain links between the Bybit hack and the recent Phemex breach. Data suggests that the attackers merged stolen funds from both incidents using the same initial theft addresses—a tactic previously used by the North Korea-backed Lazarus Group.
Impact on Ethereum Price
Bybit made a bold move by reportedly purchasing $742 million worth of Ethereum (ETH) to cover losses. This large-scale acquisition helped stabilize the market, leading to a 6% recovery in ETH’s price after the previous week’s decline.
Bybit’s swift action following one of the largest crypto hacks in history showcases the exchange’s resilience and commitment to maintaining user trust. With the upcoming proof-of-reserves audit, Bybit aims to reinforce transparency and assure clients that their assets remain secure.