Bybit CEO Ben Zhou has confirmed that the cryptocurrency exchange has fully replaced the $1.4 billion worth of Ether (ETH) stolen during the recent hack linked to the North Korean-backed Lazarus Group. Zhou announced that a new audited proof-of-reserve report will soon be published, demonstrating that Bybit’s client assets are once again backed 1:1 through a Merkle tree verification system.
How Bybit Secured the Missing ETH
The update follows reports from blockchain analytics firm Lookonchain, which revealed that Bybit acquired approximately 446,870 ETH—valued at around $1.23 billion – through loans, whale deposits, and direct purchases. This acquisition accounts for nearly 88% of the total ETH stolen in the hack, which occurred on February 21.
Among the purchases, Lookonchain identified that a Bybit-linked wallet address, “0x2E45…1b77,” secured 157,660 ETH worth $437.8 million from prominent crypto investment firms, including Galaxy Digital, FalconX, and Wintermute, through over-the-counter (OTC) transactions. Additionally, another wallet, “0xd7CF…A995,” reportedly connected to Bybit, bought approximately $304 million worth of ETH via both centralized and decentralized exchanges.
Blockchain Confirmation of Transactions
Blockchain intelligence platform Arkham further confirmed the connection, noting that the wallet “0xd7CF…A995” had engaged with Binance and MEXC hot wallets. These purchases began on February 22, with the first transaction recorded at 4:44 pm UTC.
Impact and Platform Stability
The $1.4 billion hack, now the largest in crypto history, accounted for more than 60% of all crypto funds stolen in 2024. Despite the breach, Bybit maintained platform stability, with customer withdrawals exceeding $5.3 billion on February 22 alone.
Proof-of-reserve auditor Hacken confirmed that Bybit’s reserves continue to surpass its liabilities, ensuring that user funds remain fully backed. As of now, Bybit’s total assets stand at $10.9 billion, according to DefiLlama data.
Related: Woman Sentenced 10 Years for Defrauding Bybit of $5.7M
Market Reaction and Recovery
The hack initially caused a significant market reaction, with ETH prices falling over 7% within hours, dropping from $2,831 to $2,629. However, the cryptocurrency has since shown resilience, recovering to $2,765, according to CoinGecko.
Bybit’s swift action to close the ETH gap demonstrates its commitment to user security and platform integrity, reinforcing trust among its global user base.
