Bybit has taken significant steps toward recovery following a devastating hack that resulted in a $1.4 billion loss. The cryptocurrency exchange has bought 157,660 ETH, valued at approximately $437.8 million, from Galaxy Digital, FalconX, and Wintermute through over-the-counter (OTC) transactions, according to blockchain analytics firm Lookonchain on February 23.
Attempts to Recover from Historic Hack
Since the breach, Bybit has acquired nearly 446,870 ETH, worth around $1.23 billion, through various means such as loans, whale deposits, and direct purchases. This acquisition follows the February 21 hack, where the North Korean Lazarus Group is believed to be behind the attack, which remains the largest cryptocurrency hack in history.
The wallet address associated with Bybit, “0x2E45…1b77,” was used to complete the ETH purchases, with additional funds spent through wallet “0xd7CF…A995.” Blockchain analysis firm Arkham Intelligence has linked the latter wallet to Bybit.
Market Reaction and Reserve Status
Following the attack, Ethereum’s price dropped 7%, falling from $2,831 to $2,629, before partially recovering to $2,765. Despite this market dip, Bybit’s proof-of-reserve auditor, Hacken, has confirmed that the exchange’s reserves now exceed its liabilities, securing user funds after a withdrawal surge of $5.3 billion on February 22.
Ongoing Recovery Efforts
Bybit’s aggressive Ethereum accumulation strategy signals the exchange’s commitment to rebuilding its financial position. However, without an official statement addressing the hack or detailing further recovery plans, the exchange’s ability to regain user trust remains uncertain.
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