Bybit conducted massive ETH purchases to close the gap and recovered $1.4B in Ether following Lazarus Hack, CEO confirmed

Cryptocurrency exchange Bybit has fully replenished the $1.4 billion worth of Ether (ETH) stolen in a major hack allegedly perpetrated by the North Korea-backed Lazarus Group, CEO Ben Zhou announced on February 24.

The move follows substantial purchases of Ether, bringing client assets back to a 1:1 reserve ratio.

Zhou assured users that Bybit will soon release a new audited proof-of-reserve report using a Merkle tree structure to confirm the restoration of funds.

This announcement comes after blockchain analytics firm Lookonchain reported that Bybit had received 446,870 ETH—worth about $1.23 billion—through loans, whale deposits, and market purchases. These transactions accounted for nearly 88% of the stolen assets.

Massive ETH Purchases to Close the Gap

According to Lookonchain data, a wallet address linked to Bybit (“0x2E45...1b77”) purchased 157,660 ETH, valued at $437.8 million, from major crypto investment firms Galaxy Digital, FalconX, and Wintermute through over-the-counter (OTC) transactions.

An additional $304 million in Ether was acquired using another Bybit-associated wallet (“0xd7CF...A995”) via centralized and decentralized exchanges, as per Arkham Intelligence data. This address reportedly interacted with Binance and MEXC hot wallets.

Largest Crypto Hack in History

The February 21 breach, which valued at $1.4 billion in stolen funds, has been deemed the largest in crypto history, accounting for over 60% of all digital assets stolen in 2024.

The attack prompted Bybit’s customers to withdraw over $5.3 billion in assets on February 22, highlighting concerns over security and transparency.

Despite the substantial amount of outflows, Bybit’s proof-of-reserve auditor, Hacken, confirmed that the platform’s reserves still exceed its liabilities, ensuring that user funds remain fully backed.

Data from DeFiLlama indicates that Bybit’s total assets currently amount to $10.9 billion.

Bybit’s swift action to restore its reserves indicates that the exchange has a commitment to maintaining user confidence despite facing unprecedented challenges.