Bybit Recovers ETH Deficit Following $1.46B Crypto Heist

Cryptocurrency exchange Bybit has successfully closed its Ethereum (ETH) deficit following the largest crypto heist in history, which saw $1.46 billion in assets stolen on February 21, 2025.

According to data from Lookonchain, the exchange has received approximately 446,870 ETH ($1.23 billion) through a combination of loans, whale deposits, and direct ETH purchases.

Bybit restores Ethereum Deficit

Bybit CEO Ben Zhou announced that the platform has fully restored its reserves and will soon publish an audited Proof of Reserves (POR) report demonstrating 1:1 backing of client assets through Merkle tree verification.

The quick restoration of Bybit’s ETH reserves shows great industry cooperation during a crisis.

Analysis by Lookonchain reveals a detailed breakdown of the replacement funds, with the largest single contribution coming through suspected OTC buying, amounting to 157,660 ETH ($437.8 million).

A second major source provided 109,033 ETH ($304.1 million) through purchases from centralized and decentralized exchanges.

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Institutional support played a crucial role, with various entities extending emergency assistance.

Bitget contributed 40,000 ETH ($106 million) in loans, while MEXC provided 12,653 stETH ($33.8 million).

Additional support came from major industry players including Mirana Ventures (10,000 ETH) and what appears to be Fenbushi Capital (10,000 ETH).

Unknown whales and institutions collectively provided 47,800 ETH ($127.4 million) in loans.

Bybit Hack Dethrones Poly Network Hack

The $1.46 billion theft has been attributed to North Korea’s Lazarus Group, according to cybersecurity firm Elliptic’s investigation.

The attack, which used sophisticated malware to manipulate transaction approvals, represents the largest cryptocurrency heist in history, surpassing the previous record of $611 million from the Poly Network incident in 2021.

The attackers showed advanced capabilities in both the breach and subsequent laundering operations.

Within two hours of the theft, the stolen funds were methodically distributed across 50 different wallets, each containing approximately 10,000 ETH.

By February 23, the hackers had begun systematically moving funds, with 10% of the stolen assets (approximately $140 million) already transferred through various channels including decentralized exchanges, cross-chain bridges, and centralized exchanges.

This incident adds to North Korea’s cryptocurrency crime portfolio, with state-linked actors having stolen over $6 billion in digital assets since 2017.

Intelligence reports suggest these proceeds directly support the country’s ballistic missile program.

Bybit Secures Almost $1.23 Billion in Funds

The Bybit incident has catalyzed major changes in cryptocurrency exchange security protocols.

The speed of Bybit’s recovery sets a new precedent for crisis management in the cryptocurrency industry.

The exchange’s ability to secure nearly $1.23 billion in replacement funds within days shows the maturation of institutional relationships and emergency response protocols.

This collaborative approach, involving multiple exchanges and investment firms, suggests a growing recognition that security challenges require industry-wide solutions rather than individual responses.

Looking forward, Bybit’s commitment to transparent recovery through audited Proof of Reserves reports shows a shift toward greater accountability.

The incident has prompted other exchanges to reevaluate their security infrastructure, particularly regarding hot wallet management and transaction approval processes.