Bybit has successfully recovered from a recent $1.4 billion hack that targeted one of its offline “cold” wallets. The exchange has managed to fully close the “ether gap” by backing client assets 1:1, restoring market confidence.
Over the past two days, Bybit has received 446,870 ether (ETH) through a combination of loans, large deposits, and ether purchases. On-chain tracking service Lookonchain reported that more than $400 million worth of ETH was purchased through over-the-counter trading, with an additional $300 million obtained directly from exchanges. Nearly $300 million was secured through loans, while the remaining funds came from addresses associated with crypto funds.
The surge in buying activity caused ETH prices to rise by up to 4% over the weekend. However, prices have since dipped by 2% in the past 24 hours as sentiment remains somewhat subdued.
In a positive development, Bybit announced on Sunday that all deposit and withdrawal activities have returned to normal levels. Total deposits slightly exceeded withdrawals on Saturday, indicating growing market confidence in the exchange’s security measures.
The hack, which exploited a manipulated user interface and URL to gain control of Bybit’s cold wallet, allowed hackers to withdraw $1.4 billion in ETH. The stolen assets were then dispersed across multiple wallets and exchanged on decentralized platforms.
Blockchain analyst ZachXBT linked the hack to North Korea’s Lazarus Group, a state-sponsored hacking collective known for its involvement in various crypto thefts. The group was responsible for the $600 million Ronin Network hack in 2022 and a $230 million drain on Indian exchange WazirX in 2024.
Despite the challenging ordeal, Bybit’s swift response and recovery efforts have demonstrated its commitment to safeguarding client assets and maintaining market stability. The exchange’s ability to rectify the situation and restore normal operations bodes well for its reputation within the cryptocurrency community.