- Bybit suffered a major cyberattack, losing 499,000 ETH, with the hacker still holding 399,000 ETH despite laundering efforts through THORChain.
- However, Bybit swiftly recovered by securing loans, repurchasing Ethereum, and conducting a proof-of-reserves audit, demonstrating resilience and industry solidarity.
The cryptocurrency world was shaken when Bybit, one of the leading exchanges, fell victim to a massive cyberattack. The hacker behind the breach made away with 499,000 ETH, strategically breaking up transactions to avoid detection. Despite Bybit’s swift response, the criminal still holds 399,000 ETH—more than the Ethereum Foundation and co-founder Vitalik Buterin combined.
A Sophisticated Laundering Operation
Blockchain analytics firm Spot On Chain reported that the hacker meticulously transferred stolen Ethereum through multiple addresses, making tracking and recovery efforts more difficult. The cybercriminal leveraged THORChain (RUNE) to convert Ethereum into Bitcoin (BTC), Dai (DAI), and other assets, attempting to obfuscate the movement of funds.
While authorities and security firms continue to investigate, the sheer scale of the theft underscores ongoing vulnerabilities in the crypto industry.
Bybit’s Resilience and Financial Stability
Despite the staggering loss, Bybit has taken significant steps to reassure its users and mitigate financial damage. One of the most remarkable recovery efforts was securing a 40,000 ETH loan from rival exchange Bitget—interest-free and without collateral. Bitget CEO Gracy Chen confirmed that Bybit fully repaid the loan by February 25, highlighting the industry’s solidarity in times of crisis.
“It’s wonderful to see Bybit completely recovered, and we never had any concerns about the loan’s repayment. This incident demonstrated our industry’s resilience and unity,” said Chen.
Additionally, Bybit CEO Ben Zhou assured the community that the exchange had already covered all user losses. To further bolster confidence, Bybit conducted a proof-of-reserves audit, which confirmed the exchange’s strong financial standing despite the breach.
Market Impact and Future Precautions
In response to the hack, Bybit aggressively repurchased Ethereum to stabilize its reserves. Analysts from Bitfinex noted that this buying activity could help offset selling pressure and sustain ETH prices. The exchange has also secured large whale deposits and additional loans from bridge partners to strengthen its financial position.
The Bybit hack serves as a stark reminder of the persistent threats in the crypto space. While exchanges continue to enhance security measures, incidents like these highlight the importance of robust risk management and industry-wide cooperation. The ability of Bybit to recover swiftly not only demonstrates its resilience but also reflects the crypto sector’s growing maturity in handling security crises.
