The exchange announces the full recovery of funds and promises a “proof of reserves” to demonstrate full coverage of customer assets.
Following the largest hack in cryptocurrency history, Bybit has announced that it has fully restored its Ether reserves. CEO Ben Zhou confirmed that the exchange has covered the deficit caused by the theft of over 400,000 ETH, worth approximately $1.4 billion.
Zhou stated:
According to on-chain data provided by Lookonchain, the exchange appears to have filled the gap through a combination of loans, deposits from large investors, and direct ETH purchases.
The incident, which occurred on February 21, saw attackers—allegedly linked to the North Korean Lazarus Group—exploit a vulnerability in the exchange’s multi-signature approval process. The hackers managed to deceive operators by presenting a counterfeit user interface that concealed a malicious smart contract, allowing them to divert funds to addresses under their control.
To handle the emergency, Bybit swiftly secured liquidity through what Zhou described as a “bridge loan” from industry partners, enabling the exchange to process withdrawal requests and maintain operational stability. The CEO had already reassured users about the platform’s solvency, stating that the exchange’s reserves and retained earnings were sufficient to cover the losses.
