Bybit Recovers from $1.4 Billion Ethereum Hack, Restores Reserves

Bybit, the cryptocurrency exchange, announced on February 24th that it has fully recovered from a $1.4 billion Ethereum (ETH) deficit caused by a major hack last week. CEO Ben Zhou confirmed the restoration of ETH reserves, stating that a new proof-of-reserves report will soon be released to demonstrate a 1:1 backing of client assets. According to Lookonchain, the exchange replenished its reserves through a combination of loans, whale deposits, and over-the-counter (OTC) purchases, acquiring 446,870 ETH worth approximately $1.23 billion. The exchange also launched a bounty program on February 22, offering up to 10% of recovered funds, potentially $140 million, to ethical hackers assisting in the recovery. Despite these efforts, the attackers have begun laundering the stolen funds, converting tokens into ETH and Bitcoin through decentralized exchanges and mixers. Bybit has collaborated with crypto platforms to freeze stolen assets, recovering 15,000 cmETH tokens worth approximately $43 million.