Bybit CEO Confirms Closing ETH Gap, Exchange Back to 100% Reserves After Record $1.5B Hack
Key Takeaways
- Bybit replenished its $1.5 billion deficit within three days following the most significant crypto hack in history.
- The gap was filled using a combination of loans from competitor exchanges, buybacks from reserves, and whale deposits.
- Withdrawals, which initially spiked post-hack, have now returned to normal.
Just days after falling victim to the largest crypto hack on record, Bybit has fully replenished the 446,870 ETH ($1.23 billion) drained from its wallets.
The breach, which targeted Bybit’s Ethereum reserves last Friday, was later attributed to North Korea’s notorious Lazarus Group.
How Bybit Filled the Gap: Loans, Whale Deposits, and Buybacks
In a rapid turnaround, Bybit CEO Ben Zhou confirmed that the exchange had closed the deficit and would soon publish an audited Proof of Reserves (PoR) report to verify that client assets remain fully backed.
“Bybit has already fully closed the ETH gap. A new audited PoR report will be published very soon to show that Bybit is again back to 100% 1:1 on client assets through Merkle Tree. Stay tuned,” Ben Zhou, CEO of Bybit, announced.
Within three days, the exchange secured the necessary funds from a mix of:
- Loans from competing exchanges, including Binance and Bitfinex.
- Deposits from crypto whales who stepped in to support the platform.
- ETH buybacks from the company’s own reserves.
On-chain data from Lookonchain shows the rapid inflow of funds, which helped stabilize Bybit’s liquidity. The exchange confirmed that withdrawals, which initially spiked following the hack, have returned to normal levels.
Industry Response and Transparency Measures
The hack raised concerns over centralized exchange security, particularly given the scale of the theft.
However, Bybit’s response was notably swift.
The exchange provided continuous updates through official statements, live sessions, and posts on X, keeping users informed at every step.
This included outlining clear strategies, detailing liquidity measures, withdrawal timelines, and ongoing investigations.
Bybit’s approach helped contain speculation and maintain user trust. Zhou confirmed that a full Proof of Reserves (PoR) audit is expected to be released soon.
