Bybit Recovers $693M in ETH After $1.4B Hack

Crypto exchange Bybit has swiftly responded to a recent security breach, managing to recover nearly $700 million worth of Ethereum (ETH) within just 48 hours. The exchange has secured a total of 254,830 ETH through over-the-counter (OTC) deals and loans from various players in the market.

Bybit's efforts have resulted in the amassing of $693 million in ETH, with the funds sourced through multiple channels. According to data from SpotOnChain, the breakdown of the ETH acquired includes 132,178 ETH (worth $367 million) obtained through OTC deals with entities like Galaxy Digital, FalconX, and Wintermute. Additionally, institutional loans accounted for 122,652 ETH (valued at $326 million), sourced from exchanges and institutions such as Bitget, MEXC, Binance, and DWF Labs.

Ben Zhou, the CEO and co-founder of Bybit, has confirmed that the exchange has fully closed the ETH gap and is back to normal operations. Zhou stated that a new audited proof-of-reserves (POR) report will be published soon, demonstrating that Bybit is again at 100% 1:1 on client assets through a merkle tree.

The hacker responsible for the $1.4 billion breach has laundered 40,944 ETH ($115 million) into Bitcoin and other assets using platforms like Chainflip, THORChain, LiFi, DLN, and eXch. Despite these actions, the hacker still holds a substantial portion of the stolen funds—458,451 ETH ($1.29 billion), representing 91.7% of the total stolen amount.

The incident has raised concerns about exchange security and the effectiveness of asset recovery strategies in the crypto ecosystem. In response, Bybit has unveiled a Recovery Bounty Program, offering a 10% reward on recovered assets, potentially reaching $140 million if the full amount is successfully recovered. Industry peers have united in a coordinated effort to freeze nearly $43 million within just two days of the massive security breach.