Bybit CEO Ben Zhou has confirmed that the exchange has fully restored its Ethereum reserves following the massive $1.4 billion security breach.
In a post on X(Twitter), Zhou announced that Bybit will soon release an updated proof-of-reserves report, demonstrating that client assets are now held 1:1.
Bybit Recovers from the Largest Crypto Heist
The attack targeted Bybit’s multisig cold wallet system, allowing hackers to exploit a vulnerability and drain 401,346 ETH—valued at approximately $1.13 billion—from the exchange’s hot wallet. Within hours, Bybit’s total reserves dropped by $5.2 billion, leading to widespread concerns over the platform’s stability.
Despite the significant loss, Bybit acted swiftly to secure emergency funding and restore its reserves. On-chain data confirmed that deposits and withdrawals resumed at normal levels soon after the breach. Zhou assured users that Bybit has successfully replenished its ETH reserves and is now operating at full capacity.
How Bybit Restored Its Reserves
The recovery process was swift, with Bybit securing the necessary funds within three days. The exchange received support from multiple sources, including loans from major exchanges such as Binance and Bitfinex, deposits from crypto whales, and ETH buybacks from the company’s personal reserves.
The crypto industry rallied behind Bybit, with key figures stepping in to provide financial support. Du Jun, co-founder of Huobi, deposited 10,000 ETH into Bybit and committed to keeping it there for at least a month. Co-founders of Conflux and Mask Network also moved ETH back to the exchange to help stabilize liquidity.
Bitget CEO Gracy Chen revealed that they had proactively reached out to Bybit, offering short-term liquidity without requiring collateral, interest, or commitments.
The response from institutional players and the broader Web3 community highlighted the industry’s collective effort to protect the exchange and maintain confidence in the crypto ecosystem.
Also Read: Former Bybit Payroll Chief Pleads Guilty To $5.7 Million Fraud, Sentenced For More Than 9 Years
Bybit’s Message to the Community
Bybit acknowledged the overwhelming support it received in the aftermath of the attack. In a statement, the exchange thanked its users, partners, and the broader crypto community for standing by its side.
The company reaffirmed its commitment to strengthening security measures and introducing new initiatives to prevent future attacks.
Bybit emphasized that it remains dedicated to safeguarding user assets and will continue to implement advanced security protocols. The exchange also hinted at upcoming initiatives aimed at fortifying the industry against cyber threats.
Hackers Begin Laundering Stolen Funds
Despite Bybit’s successful recovery efforts, the attackers have already begun laundering the stolen crypto. Blockchain forensics firm Elliptic noted that the methods used closely resemble tactics employed by the Lazarus Group, a cybercriminal organization linked to North Korea.
The hackers are reportedly using decentralized exchanges, cross-chain bridges, and mixing services to obscure the transaction trail. The laundering process is expected to continue in phases, making fund recovery challenging. However, security firms and law enforcement agencies are actively tracking the stolen assets to prevent them from being cashed out.
Bybit Looks Ahead with Renewed Strength
The attack on Bybit was one of the largest in crypto history, but the exchange’s rapid response has reinforced its standing in the industry. By securing emergency funds and regaining full 1:1 backing of client assets, Bybit has demonstrated resilience in the face of adversity.
While the security breach was a major setback, the overwhelming support from the crypto community has positioned Bybit for a stronger comeback.