In a remarkable turnaround, Bybit exchange has managed to replenish nearly 50% of its Ether (ETH) reserves after suffering a staggering $1.4 billion hack earlier this month. With recent purchases amounting to $295 million in Ether, Bybit has drawn attention to its liquidity recovery amidst one of the largest crypto thefts in history.
On February 21, Bybit fell victim to a sophisticated attack that resulted in the loss of over $1.4 billion worth of liquid-staked Ether (STETH) and other tokens, including Mantle Staked ETH (mETH). In just two days since the hack, data from CryptoQuant has shown that Bybit’s Ether reserves surged back to more than 201,600 ETH, representing about 45% of their holdings before the attack.
The recovery was bolstered not only by the exchange’s own buying efforts but also by considerable emergency support from fellow crypto exchanges. Notable contributions included 50,000 ETH from Binance and 40,000 ETH from Bitget, alongside significant transfers from investors and hedge funds.
Despite this recovery, Bybit’s total assets have seen a dramatic decrease, plummeting by over $5.3 billion in the aftermath. This value drop primarily encompasses the losses from the hack. Yet, according to independent proof-of-reserve audits, Bybit’s reserves are still greater than its liabilities, solidifying user confidence in the platform’s operational stability.
Security experts have pointed to the involvement of the North Korean state-sponsored Lazarus Group as the prime suspect behind this unprecedented hack. Analysts have noted similarities to previous hacks involving major exchanges, prompting a deeper investigation into the vulnerabilities within smart contracts and multisig wallets that were exploited during the incident.
As Bybit continues to navigate its recovery journey, the crypto industry stands vigilant, showcasing an adaptive response to crisis management and the resilience of the decentralized financial ecosystem.
