The cryptocurrency exchange Bybit has successfully restored its Ethereum deficit following a major heist that resulted in the loss of $1.46 billion.
Bybit Reserves Restoration
Bybit CEO Ben Zhou announced that the platform has fully restored its reserves and will soon publish an audited Proof of Reserves (POR) report demonstrating 1:1 backing of client assets through Merkle tree verification. According to Lookonchain data, Bybit received approximately 446,870 ETH ($1.23 billion) through a combination of loans, whale deposits, and direct ETH purchases. The largest contribution came from suspected OTC buying, amounting to 157,660 ETH ($437.8 million).
Largest Crypto Heist in History
The $1.46 billion theft has been attributed to North Korea’s Lazarus Group, according to cybersecurity firm Elliptic’s investigation. The attack represents the largest cryptocurrency heist in history, surpassing the previous record from the Poly Network incident in 2021. The stolen funds were methodically distributed across 50 different wallets within two hours of the theft, each containing approximately 10,000 ETH. By February 23, the hackers began systematically moving the funds.
Impact and Security Updates
The Bybit incident has catalyzed major changes in cryptocurrency exchange security protocols. The speed of Bybit’s recovery sets a new precedent for crisis management in the cryptocurrency industry. It also prompted other exchanges to reevaluate their security infrastructure, particularly regarding hot wallet management and transaction approval processes. Bybit’s commitment to transparent recovery through audited Proof of Reserves reports indicates a shift toward greater accountability.
The Bybit hack has become a pivotal event for the crypto industry, highlighting the need for collective security solutions. The speed and coordination of the recovery efforts underscore the maturity of institutional relationships and emergency response protocols.
