Cryptocurrency exchange Bybit successfully recovered $1.4 billion in ETH stolen in a recent hack. Despite the challenging situation, the exchange quickly compensated for the losses, maintaining client trust.
Recovery from Major Hack
Bybit secured 446,870 ETH ($1.23 billion) over two days through loans, deposits, and OTC deals. More than $400 million was purchased OTC, while $300 million came from exchanges, and another $300 million was secured through loans. These efforts helped ensure a 1:1 backing of client assets.
Hack Details and Bybit's Response
The attack, targeting one of Bybit's cold wallets, is linked to North Korea's Lazarus Group. They manipulated Bybit's UI and smart contract logic, redirecting funds to multiple wallets before splitting and swapping them through decentralized exchanges. Ultimately, the stolen funds were dispersed into 50 wallets, each holding 10,000 ETH.
Security Warning and Future Steps
Bybit confirmed that deposit and withdrawal operations are back to normal. Bybit CEO Ben Zhou stated that the exchange has fully restored the missing ETH and will soon publish a proof-of-reserves audit. Lucien Bourdon from Trezor warns: 'Phishing remains one of crypto’s most common attack vectors. Always stop and think before taking action.'
Bybit users can trust the platform's transparency and reliability despite the recent attack. The exchange will continue to enhance security and maintain client trust.
