Bybit's $742M ETH Buy Spree After $1.4B Hack

Crypto exchange Bybit has reportedly purchased nearly 266,700 Ether (ETH), valued at approximately $742 million, over a two-day period following a significant hack. According to blockchain analytics firm Lookonchain, the exchange appears to have made these purchases through over-the-counter (OTC) deals and centralized/decentralized exchanges (CEX/DEX).

The first purchase, totaling 157,660 ETH worth $437.8 million, was made through OTC transactions with crypto investment firms Galaxy Digital, FalconX, and Wintermute. This transaction was conducted using the wallet address "0x2E45...1b77" and was first recorded on February 22 at 4:44 pm UTC.

In addition to the OTC purchases, another $304 million worth of ETH was bought using the wallet address "0xd7CF...A995" through CEX and DEX platforms. This transaction is also likely tied to Bybit, as suggested by data from Arkham Intelligence. The address "0xd7CF...A995" has been observed interacting with hot wallets on Binance and MEXC.

The purchases come in the wake of a $1.4 billion hack suffered by Bybit on February 21, which was orchestrated by the North Korean state-backed hacker organization Lazarus Group. This hack was the largest in crypto history, representing more than 60% of all crypto funds stolen in 2024.

As Bybit works to recover from the hack, these ETH purchases suggest that the exchange is actively seeking to rebuild its reserves and restore its financial stability. The use of OTC deals and both CEX and DEX platforms indicates a strategic approach to acquiring the necessary funds to facilitate a swift recovery.