Over $1.4 billion in Ether was reportedly stolen during the hack
Bybit has restored its operations after a major security breach that resulted in the theft of $1.4 billion worth of Ether. CEO Ben Zhou confirmed that the exchange has fully replaced the lost assets and will soon release a new proof-of-reserve report to assure users that client funds remain at a 1:1 ratio. The report, using a Merkle tree verification method, aims to rebuild trust following the massive hack.
Latest Update: Bybit has already fully closed the ETH gap, 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. https://t.co/QLa1vOujM6
— Ben Zhou (@benbybit) February 24, 2025
Blockchain analytics firm Lookonchain reported that Bybit secured approximately 446,870 Ether, valued at $1.23 billion, from a combination of loans, whale deposits, and purchases. These funds covered nearly 88% of the stolen amount, which was allegedly taken by the North Korean-backed Lazarus Group.
A significant portion of the recovered Ether—157,660 ETH worth around $437.8 million—was acquired from major crypto investment firms, including Galaxy Digital, FalconX, and Wintermute, through over-the-counter deals. Another $304 million was likely obtained through centralized and decentralized exchanges, based on blockchain tracking data.
Following the breach, Bybit saw a sharp increase in customer withdrawals, surpassing $5.3 billion on February 22. Despite this, auditing firm Hacken confirmed that the platform’s reserves remain strong and continue to exceed its liabilities, ensuring that user funds are still backed.
The hack marked the largest crypto theft of the year, accounting for more than 60% of all stolen digital assets in 2024. The incident also impacted Ether’s market value, with the cryptocurrency dropping over 7% in the hours following the attack. However, prices have since shown signs of recovery.
Bybit’s response to the breach highlights the ongoing challenges faced by cryptocurrency exchanges in securing assets against cyber threats while maintaining user confidence in the rapidly evolving market.
