Bybit, the popular cryptocurrency exchange, suffered massive losses following the $1.5 billion Ethereum theft. The article explores how the exchange is dealing with the situation.
Details of the Theft and Bybit's Response
Recently, hackers allegedly stole over 0.4 million Ethereum (ETH) tokens amounting to $1.5 billion from one of Bybit's cold wallets. Despite this, the exchange quickly assured users of the safety of their funds by reinforcing its reserves. Bybit continues to operate normally, including withdrawals.
Ethereum Movements Post-Hack
Following the incident, a suspected institutional address transferred 22,600 ETH into Bybit, coinciding with the withdrawal of 73.599 million USDT. Other activities included transferring $48 million to OTC platforms like Galaxy Digital and FalconX for buying 34,800 ETH, which were then deposited into Bybit.
Efforts to Rebuild Reserves
Bybit is actively rebuilding its reserves post-hack. Working with key market players such as Galaxy Digital and FalconX, the exchange acquired significant volumes of ETH to cover the lost assets. Consequently, Bybit's reserves increased to 159,702 ETH. Although hackers wiped out about 30% of its ETH holdings, this represents only 0.3% to 0.4% of the overall Ethereum supply.
Despite substantial losses, Bybit is actively restoring its reserves and taking measures to bolster user trust. A significant aspect of this process is partnering with key market players to restore liquidity.
