Bybit has successfully eliminated the Ethereum (ETH) shortage after the largest theft in the history of cryptocurrencies CEO of Bybit Ben Zhou wroteThe ETH reserve gap is now fully closed. In the near future, a new Proof of Reserves (POR) report will be published, which will demonstrate that customer assets are once again backed by a 1:1 ratio using the Merkle tree structure.
On February 21, hackers allegedly linked to the North Korean Lazarus group stole approximately 401,346 ETH (Ethereum) from the Bybit cold wallet, which was worth about $1.4-$1.5 billion at the time. This incident occurred during a routine transfer of funds from a cold wallet (offline storage) to a warm wallet (for daily operations). The attackers used a sophisticated attack by manipulating the smart contract logic and the transaction signing interface.
This caused panic among users, leading to massive withdrawals — over the weekend, more than $6.1 billion was withdrawn from Bybit, including 23,000 BTC ($1.7 billion) from hot wallets.
Ethereum’s price dropped by 7-8% in a few hours, falling from $2,831 to $2,629, although it later partially recovered to $2,700. Bybit quickly suspended the withdrawals, conducted an investigation, and enlisted partners to replenish its reserves.
According to CEO Ben Zhou, the exchange received 446,870 ETH (about $1.23 billion) through loans, deposits from major players, and direct purchases of ETH through brokers such as Galaxy Digital, FalconX, and Wintermute.
In addition, Bybit has launched a reward program (10% of the recovered funds, which is about $140 million) for hackers who help recover the stolen goods.
Meanwhile, the criminals are actively laundering the funds — Elliptic analysts tracked movement of $140 million due to confusing transactions.
As of now, Bybit’s assets are estimated at $10.8-$10.9 billion, and deposits and withdrawals restored.