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Sujit Kumar
Feb 24, 2025
by Sujit Kumar

Bybit Replenishes Reserves After $1.4B ETH Hack, Securing Client Funds

Bybit Replenishes Reserves

Table of contents

  1. How the Hack Unfolded
    1. Swift Response Amid Security Concerns
  2. Looking Ahead
Following a devastating hack that drained approximately $1.4 billion in Ethereum from its platform, Bybit has successfully replenished its reserves. The exchange has restored its liquidity by bridging the "ETH gap" through a strategic mix of bridge loans, substantial deposits, and targeted Ethereum purchases, according to data from blockchain tracker Lookonchain.

How the Hack Unfolded

The breach, which occurred on February 21, is considered one of the largest in recent crypto history. Attackers exploited a transfer between Bybit’s cold wallet (offline storage) and its warm wallet used for daily transactions, siphoning off roughly 401,000 ETH to an unknown address. Investigations suggest the notorious North Korean Lazarus Group may be behind the exploit.

Swift Response Amid Security Concerns

In response to the hack, Bybit CEO Ben Zhou reassured users that the platform remains financially stable and that unaffected wallets continue to function normally. Zhou confirmed that the company has acted rapidly to secure client assets, and that withdrawal services have returned to normal. The exchange’s decisive measures prevented a major liquidity crisis, despite the broader industry seeing a 21% increase in crypto thefts in 2024, with North Korean-linked hackers responsible for a significant share of losses.

Looking Ahead

Bybit’s quick recovery highlights its commitment to safeguarding user funds and addressing security vulnerabilities head-on. As the investigation continues and law enforcement agencies work to recover the stolen funds, industry observers note that the incident underscores the ongoing risks within the crypto ecosystem.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Bybit Replenishes Reserves
Bybit Replenishes Reserves After $1.4B ETH Hack, Securing Client Funds
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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