Bybit has officially filled the $1.4 billion hole left by one of the biggest crypto hacks in history. CEO Ben Zhou announced that the exchange has “fully closed the ETH gap” and will soon release an audited proof-of-reserve report showing a 1:1 backing of client assets, according to Lookonchain.
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Bybit Secures Funds through Loans, Whale Deposits, and Purchases
To cover the staggering loss, Bybit scrambled to secure 446,870 Ethereum worth around $1.23 billion. Lookonchain reported that over $400 million came from over-the-counter purchases, while another $300 million was acquired directly from exchanges. The remaining funds were sourced from loans and large deposits. On-chain data shows that wallet addresses linked to Bybit interacted with Binance and MEXC to facilitate these transactions.
Ether Plunges, then Rebounds as Bybit Restores Operations
Ethereum (ETH-USD) initially plunged over 7% in the hours following the attack, falling from $2,831 to $2,629, but has since rebounded to $2,765, according to Cointelegraph. Bybit also confirmed that deposit and withdrawal activity has “fully recovered to normal levels,” with deposits slightly exceeding withdrawals by Saturday.
Hack Linked to North Korea’s Lazarus Group
Blockchain investigator ZachXBT has tied the attack to North Korea’s Lazarus Group, a notorious state-backed hacking collective responsible for some of the largest crypto heists in history. The group previously pulled off the $600 million Ronin Network hack in 2022 and drained $230 million from Indian exchange WazirX in 2024.
Bybit’s ability to replenish funds so quickly may restore confidence, but the attack highlights the ongoing risks in crypto security. As the exchange normalizes withdrawals and prepares a proof-of-reserve report, investors should watch how these measures impact market confidence and the prices of their favorite cryptocurrencies on TipRanks.
