"Bybit's ETH Recovery: Industry United, $300M OTC Purchases"

Bybit, a leading cryptocurrency exchange, has swiftly recovered nearly half of its lost Ether reserves following a massive hack that occurred on February 21. The incident, which resulted in the theft of over 439,000 ETH and liquid-staked tokens, was the largest cryptocurrency theft in history, with an estimated value of $1.4 billion.

In a remarkable display of resilience, Bybit has managed to replenish its ETH reserves to 201,600 ETH, up from the post-hack low of just 61,000 ETH. This rapid recovery is a testament to the exchange's commitment to maintaining liquidity and ensuring the safety of its users' assets.

The exchange's recovery efforts were bolstered by significant spot purchases, with Bybit acquiring over 106,498 ETH worth approximately $295 million in over-the-counter (OTC) trades. This strategic move allowed Bybit to quickly restore its ETH reserves and maintain market confidence.

Bybit's rapid recovery was not solely the result of its own efforts. Major players across the industry stepped up to provide emergency liquidity to the embattled platform, demonstrating a rare show of solidarity in a fiercely competitive market. According to blockchain intelligence firm Lookonchain, Bybit received:

• 50,000 ETH from Binance
• 40,000 ETH from Bitget
• 10,000 ETH from Du Jun, co-founder of HTX Group
• $390 million worth of Ether in loans and deposits, including $127 million from Binance-based whales

Despite the staggering scale of the attack, Bybit's ability to process 350,000 withdrawal requests within 10 hours, completing 99.9% of them, helped reassure its users and prevent a liquidity crisis. This swift action was crucial in maintaining user confidence and mitigating the potential fallout from the hack.

As Bybit works to rebuild its reserves, blockchain security experts have been working to unravel how the attack happened. Analysts, including Arkham Intelligence and onchain sleuth ZachXBT, have linked the breach to