Cryptocurrency exchange Bybit has successfully recovered from a $1.46 billion security breach, securing $1.23 billion in Ethereum (ETH) through a combination of loans, whale deposits and direct purchases.
The move comes after the exchange suffered one of the largest cyberattacks in crypto history, suspected to be orchestrated by North Korea-backed hacker group Lazarus.
Blockchain analytics platform Lookonchain revealed on February 24 that Bybit replenished its reserves by acquiring 446,870 ETH worth $1.23 billion from multiple sources.
The exchange reportedly purchased 266,694 ETH worth $742 million while institutional investors and crypto whales provided additional liquidity.
A breakdown of Bybit’s fund recovery strategy shows that:
- 157,660 ETH ($437.8 million) came from a single address, likely an over-the-counter transaction.
- 109,033 ETH ($304.1 million) was sourced from centralized and decentralized exchange purchases.
- Whale and institutional contributions totaled over $127 million, with Bitget supplying 40,000 ETH ($106 million) and MEXC contributing 12,653 stETH ($33.9 million).
- Mirana Ventures, Fenbushi Capital, and other large investors collectively deposited 42,609 ETH ($114.6 million).
Bybit CEO Ben Zhou confirmed the successful fund restoration, stating that the exchange had “fully closed the ETH gap” and was preparing to release a new audited proof-of-reserves report. The report, verified through a Merkle tree system, will provide full transparency and demonstrate that Bybit maintains a 1:1 asset backing for all client funds.
The cyberattack, which targeted Bybit’s multisignature cold wallet, saw hackers drain nearly $1.4 billion in assets. Anonymous blockchain investigator ZachXBT linked the attack to a recent breach of Phemex, noting that both incidents shared initial theft addresses—a tactic commonly associated with Lazarus Group.
Despite the security breach, Bybit’s strategic response has helped stabilize market confidence. The exchange’s bold move to purchase ETH in bulk contributed to a 6% price rebound from the previous week’s decline, reinforcing its commitment to restoring user trust and ensuring long-term security.
As Bybit prepares to publish its proof-of-reserves report, industry analysts expect increased scrutiny on crypto exchanges’ security frameworks and asset transparency measures, particularly in the wake of high-profile breaches targeting digital asset platforms.
