Bybit Restores $1.4B ETH After Hack

Bybit's CEO, Ben Zhou, announced that the cryptocurrency exchange has completely compensated for the $1.4 billion worth of Ether stolen during the hack on February 21. The update follows Lookonchain's report indicating that Bybit purchased $742 million in Ether between February 22 and 23. Zhou mentioned that an audited proof-of-reserve report would be released soon to confirm that client assets are restored to a 1:1 ratio using a Merkle tree.

Lookonchain estimated that Bybit received approximately 446,870 Ether, valued at around $1.23 billion, through loans, deposits from major investors, and acquisitions, which accounts for nearly 88% of the stolen Ether. Notably, the wallet address linked to Bybit purchased 157,660 Ether worth $437.8 million from several crypto investment firms. Additionally, another $304 million in Ether acquired through various exchanges is also likely associated with Bybit.

The $1.4 billion hack is noted as the largest in cryptocurrency history, comprising over 60% of all stolen crypto funds in 2024. Bybit's customer withdrawals exceeded $5.3 billion on February 22, and an auditor confirmed that the platform's reserves surpass its liabilities, ensuring that user funds are fully backed. Currently, Bybit's total assets are reported to be $10.9 billion.

Following the hack, the price of Ether dropped over 7% but has since rebounded to $2,765.