Recently, Bybit faced one of the largest hack attacks, with $1.46 billion worth of ETH stolen from the exchange’s cold wallet. While the company quickly replenished the funds, experts continue to discuss concerns over debts.
Current Status of the Bybit Hack
The hack targeted Bybit’s Ethereum multi-signature cold wallet last week. According to blockchain analysis firm Lookonchain, hackers manipulated the signature interface using phishing techniques to withdraw $1.23 billion worth of ETH from the wallet. CEO Ben Zhou acted swiftly, utilizing user deposits, emergency loans, and direct ETH purchases to mitigate losses and aimed to rebuild user trust by restoring all assets within two days.
How Were the Lost Funds Recovered?
The lost ETH funds were recovered from multiple sources. The largest support came from private agreements, securing 157,660 ETH worth $437.8 million. Other exchanges transferred 109,033 ETH valued at $304.1 million, significant investors lent 47,800 ETH ($127.5 million), Bitget contributed 40,000 ETH ($106 million), and smaller private agreements accounted for 22,609 ETH ($61.8 million). These efforts enabled Bybit to quickly cover its losses, though experts note much of this funding was borrowed.
Impact of the Attack and Expert Opinions
Crypto analyst Hermes Psychopomp expresses skepticism about the claims that Bybit has fully compensated losses since the funds were replaced through loans and the exchange remains technically in debt. The attack significantly impacted Ethereum’s price; despite a sharp decline after the attack, Bybit’s substantial ETH purchases contributed to a price increase, reducing market pressure.
The overall situation is under the company's control; however, experts continue to monitor Bybit’s future actions and inform users about ongoing developments.
