Cryptocurrency exchange Bybit has announced a full recovery from a devastating $1.4 billion hack, one of the largest thefts in crypto history. The attack, believed to have been carried out by the North Korea-backed Lazarus Group, targeted Bybit’s multisignature cold wallet, resulting in a massive loss. However, through a combination of strategic moves, the company has managed to restore its reserves and reassure its users.
To bridge the gap left by the hack, Bybit took swift and decisive action. The exchange purchased 266,694 ETH (worth approximately $742 million) to stabilize its reserves. This large-scale acquisition contributed to a 6% rebound in Ethereum prices after a recent market dip.
In addition to direct purchases, Bybit received significant support from institutional investors and whale deposits. Blockchain data shows that the exchange secured 446,870 ETH (worth roughly $1.23 billion) from various sources:
A single over-the-counter transaction brought in 157,660 ETH (valued at $437.8 million).
Another 109,033 ETH ($304.1 million) came from centralized and decentralized exchanges.
Institutional contributors included Bitget (40,000 ETH worth $106 million), MEXC (12,653 stETH worth $33.9 million), and other entities like Mirana Ventures and Fenbushi Capital.
These efforts allowed Bybit to fully recover its reserves and ensure that all client assets remain secure.
Bybit CEO Ben Zhou confirmed the recovery in a statement on social media platform X (formerly Twitter), saying the exchange has “fully closed the ETH gap.” Zhou also announced plans to release an audited proof-of-reserves report soon. Using a Merkle tree system, this report will verify that all client assets are backed on a 1:1 basis, underscoring Bybit’s commitment to transparency and security.
The attack on Bybit appears to be part of a broader pattern of crypto thefts linked to the Lazarus Group. Blockchain investigator ZachXBT found on-chain evidence connecting the Bybit hack to a recent breach at Phemex, another cryptocurrency exchange. The attackers reportedly used similar tactics to merge stolen funds across both incidents.
While the hack was a major setback for Bybit, the exchange’s rapid response and transparent recovery efforts have helped restore user confidence. With plans to publish an audited report and maintain full client asset backing, Bybit is positioning itself as a resilient player in the volatile world of cryptocurrency.
