Bybit has fully replenished its reserves following a devastating $1.4 billion worth of ETH hack, ensuring that client assets are fully secured and available for withdrawal.
Closing the ETH Gap
The cryptocurrency exchange, which suffered the breach on February 21, has closed the “ETH gap” through a combination of loans, large deposits, and Ethereum purchases, according to blockchain tracking service Lookonchain pots on Monday.
How the Hack Happened
The hack, one of the largest in recent history, occurred when attackers exploited a transfer between Bybitโs cold wallet (offline storage) and its warm wallet, which facilitates daily transactions.
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Hackers, potentially linked to the North Korean Lazarus group, gained access to the cold wallet and siphoned off approximately 401,000 ETH to an unknown address.
In response, Bybit CEO Ben Zhou reassured users that the exchange remains financially stable and that withdrawals and unaffected wallets continue to function normally.
To bridge the shortfall, the company secured bridge loans covering the majority of the stolen ETH and has been actively working with law enforcement agencies to track down the missing funds.
Growing Security Concerns
The hack, however, has reignited concerns about security vulnerabilities in the cryptocurrency industry.
According to Chainlaysis blockchain analytics, approximately $2.2 billion was stolen from cryptocurrency platforms in 2024, marking a 21% increase from the $1.7 billion in 2023.
North Korean-linked hackers alone carried out 47 attacks, stealing a total of $1.34 billion, or 61% of all stolen funds.
On the Flipside
- The exchange continues to operate normally, maintaining withdrawals and unaffected wallets.
Why This Matters
Despite the hacks, Bybitโs quick response prevented a major liquidity crisis. However, the scale of the hack highlights ongoing security risks within crypto exchanges.
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