Bybit Repays $100M Loan, Settles Loans Amidst Hacker's Laundering Spree

Bybit, a leading cryptocurrency exchange, has swiftly repaid a 40,000 Ethereum loan worth approximately $99.98 million to Bitget following a recent security incident. The repayment, which occurred on Feb. 24, was made from Bybit's cold wallet, according to blockchain analysis platform Lookonchain.

Bitget CEO Gracy Chen confirmed the return of the funds on Feb. 25, stating that the loan was extended as a gesture of support with no interest or collateral requirements. She expressed confidence in Bybit's ability to repay the loan, saying, "No interest, no collateral—this was simply about supporting a peer in need. Great to see Bybit fully recovered, and we never doubted the return of the loan."

Bitget provided the loan on Feb. 22 after Bybit experienced an exploit that affected its Ethereum cold wallet. The transferred funds were from Bitget's own reserves, not user deposits. Following the repayment, Bybit also transferred an extra 47,800 ETH, worth around $118 million, from its cold wallet into Binance to settle loans obtained from other institutions and large crypto holders.

These repayments came after Bybit announced that it had closed its ETH liquidity gap, restoring its client asset ratio to a 1:1 match.

The loan repayment comes as the Bybit attacker steps up its laundering efforts. According to blockchain analytical platform SpotOnChain, the attackers have already laundered around 100,000 ETH—valued at approximately $250 million—through complex steps. These include breaking the stolen funds into smaller portions and transferring them across multiple addresses, followed by cross-chain transactions using THORChain to convert ETH into other assets like Bitcoin and DAI.

Blockchain analytical firm Arkham Intelligence pointed out that these funds are being moved frequently, with two to three transactions occurring every minute. Despite these activities, the hacker still controls 399,000 ETH, surpassing holdings attributed to prominent figures like Ethereum co-founder Vitalik Buterin or even the Ethereum Foundation.

In response to these challenges, Bybit CEO Ben Zhou announced that the exchange is developing a system to prevent hacks and improve industry-wide efforts to recover lost funds.