Bybit CEO Ben Zhou announced on Monday that the exchange has fully recovered its Ethereum (ETH) holdings following a major security breach. The previous attack resulted in the loss of $1.5 billion in staked Ether (ETH) and MegaETH (mETH).

Bybit Replenishes ETH Reserves After Attack

After being hacked and losing a large chunk of its assets, Bybit quickly moved to remedy the liquidity drain by buying back $1.23 billion worth of ETH.

Funding channels include:

OTC (Over-The-Counter) Trading: Purchase of 157,660 ETH ($437.8 million)

CEX and DEX Exchanges: Additional 109,033 ETH ($304.1 million)

Institutional and Whale Loans: 47,800 ETH ($127.5 million)

Bitget Loan: 40,000 ETH ($106 million)

Other Funds: MEXC, Mirana Ventures, Fenbushi Capital, DWF Labs, etc.

Bybit Committed to Transparency Through PoR Audit

Ben Zhou emphasized that Bybit will soon release an audited Proof of Reserves (PoR) report to enhance transparency and build trust among users. This report will verify that Bybit customer assets are fully backed at a 1:1 ratio.

The Journey to Recover and Track Lost Assets

In addition to recovering the missing Ethereum, Bybit is also continuing to track and recover the stolen assets. Zhou reaffirmed his commitment to cooperate with authorities to trace the stolen funds, which are suspected to be linked to North Korea's notorious Lazarus Group.

The attack occurred while Bybit was transferring funds to its warm wallet, targeting the exchange's Ethereum multi-signature cold wallet. Hackers exploited a security vulnerability, manipulating the signature interface that Bybit's security team uses to approve transactions.

Conclusion

Bybit has repositioned its Ethereum wallet after the major hack, affirming its financial stability and continuing to provide safe trading services to customers. The event also highlighted the importance of security and transparent auditing in the cryptocurrency industry, helping to strengthen trust from the user community.