Bybit Restores $1.4B in Stolen Ether, Plans Fresh Proof-of-Reserves Report

Bybit CEO Ben Zhou has confirmed that the crypto exchange has fully replenished the $1.4 billion in Ether (ETH) that was stolen in a historic hack on Feb. 21. Zhou assured users in a Feb. 24 post on X that the company’s reserves are back at a 1:1 ratio and that a new audited proof-of-reserves report would soon be released to verify customer assets.

The recovery effort follows findings from blockchain analytics firm Lookonchain, which reported that Bybit had received 446,870 ETH—worth approximately $1.23 billion—from a combination of loans, whale deposits, and direct purchases. This accounts for nearly 88% of the stolen funds, which had been linked to the North Korea-backed hacker group Lazarus.

How Bybit Recovered the Lost Funds

Lookonchain’s analysis revealed that Bybit-associated wallet “0x2E45…1b77” had acquired 157,660 ETH, worth approximately $437.8 million, from major crypto investment firms Galaxy Digital, FalconX, and Wintermute through over-the-counter (OTC) transactions.

Additionally, another $304 million worth of ETH was likely purchased via wallet “0xd7CF…A995”, which had interacted with both centralized and decentralized exchanges. Data from Arkham Intelligence showed transactions involving Binance and MEXC hot wallets, suggesting these acquisitions were tied to Bybit’s replenishment efforts. The first major ETH purchase through the “0x2E45…1b77” wallet took place on Feb. 22 at 4:44 pm UTC.

Despite the massive breach, Bybit’s reserves remain solvent. Proof-of-reserves auditor Hacken confirmed that Bybit’s total assets still exceed its liabilities, even after customer withdrawals soared to $5.3 billion on Feb. 22.

Market Reaction

The $1.4 billion hack marked the largest crypto theft in history, accounting for over 60% of all stolen crypto funds in 2024. The attack caused Ether’s price to tumble more than 7% in just seven hours, plummeting from $2,831 to $2,629. However, ETH has since rebounded to trade above $2,700, according to CoinMarketCap data.

Despite the setback, Bybit’s total assets still stand at $10.9 billion, based on DeFiLlama data. With a proof-of-reserves audit on the way, Bybit aims to reinforce trust among its users.