Bybit Closes ETH Gap After $1.5B Hack, CEO Promises Full Asset Backing

Bybit, a leading cryptocurrency exchange, has swiftly moved to close the ETH gap following a recent $1.5 billion hack. The exchange has announced plans to release a proof of reserves report, confirming its return to full asset backing.

Data from blockchain analysis platform Lookonchain reveals that Bybit has received a significant 446,870 ETH, worth around $1.23 billion, through loans, whale deposits, and ETH purchases. This influx of ETH has helped the exchange nearly close the gap caused by the hack.

Bybit CEO Ben Zhou has asked the crypto community to stay tuned for the new audited proof of reserves (POR) report, which will be published soon. The report will demonstrate that Bybit is again fully backed at 1:1 on client assets through a merkle tree.

In a separate development, on-chain reporter EmberCN shared information about the Bybit hacker's activities. The hacker has sold a substantial 50,700 ETH, worth $142 million, in exchange for DAI and other on-chain assets such as BTC. Despite this sale, Bybit's buying spree has helped stabilize the price of ETH.

Bybit or its affiliates have purchased a total of 157,600 ETH, worth $441 million, through prominent brokers such as Galaxy Digital, FalconX, and Wintermute. This buying spree has contributed to the stabilization of ETH's price, which currently trades above $2,700 and is looking towards the $3,000 resistance.

Looking at the daily chart provided by TradingView, the Relative Strength Index (RSI) for ETH reads a value of 44.39, indicating neutral to bearish momentum. The gradient of the line suggests that sellers are currently dominating the price trajectory of the cryptocurrency. The MACD indicator shows that the MACD line remains above the signal line but is very close, suggesting that the bears are gaining an upper hand over the buyers. The histogram is green but the intensity of the bars suggests decreasing bullish momentum.