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Bybit Restores Liquidity 30 Days After $1.5B Hack

Coin WorldWednesday, May 7, 2025 1:00 pm ET

1min read

Bybit, a prominent cryptocurrency exchange, has successfully restored its liquidity levels to pre-hack standards within just 30 days following a significant cyberattack in February 2025. The incident, which resulted in the loss of nearly $1.5 billion, was a major setback for the exchange. However, according to a report from a crypto research and analytics firm, Bitcoin's 1% market depth, a key indicator of liquidity, returned to its pre-hack levels of around $13 million per day by March 2025. This swift recovery underscores the resilience of the exchange and the broader cryptocurrency market.

While Bitcoin liquidity rebounded quickly, altcoin liquidity levels on the exchange have been slower to recover. As of the latest data, altcoin liquidity has rebounded to around 80% of pre-hack levels. The slower recovery of altcoins is attributed to the risk-off market environment, which has had a more severe impact on these assets. Despite this, Bitcoin remains a safe haven within the crypto market, even as it is still considered a risky asset.

Overall, Bybit's trading volumes are still in the recovery phase. However, the drop in trading volumes is not solely due to the hack but reflects the broader market trend in response to ongoing macroeconomic uncertainty. This uncertainty has rattled risk asset markets, including cryptocurrencies, and is a significant factor in the current market conditions.

The hack on Bybit occurred on February 21, 2025, when cybercriminals exploited a compromised device from a SafeWallet developer. This developer was responsible for the multi-signature wallet custody solution used by the exchange. Despite the severity of the attack, Bybit managed to keep withdrawals open, allowing users to access and withdraw their funds with minimal delay during the crisis. This proactive approach helped to mitigate the impact of the hack and maintain user trust.

In response to the incident, Bybit's CEO, Ben Zhou, reassured investors that the exchange was solvent and that the company's reserves could cover the shortfall, regardless of whether the stolen funds were ever recovered. This statement, along with the support from competitors who provided bridge loans, technical assistance, and froze the stolen funds on their protocols, helped to unite the crypto industry behind Bybit. This collective effort highlights the importance of industry cooperation in the face of significant challenges.

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