- Bybit fully replenishes 400,000+ ETH after one of the biggest crypto heists ever.
- Proof-of-Reserves audit coming soon to assure customers of full asset backing.
- Crypto industry steps in to help, with Bitget, MEXC, and Mirana Ventures contributing to recovery efforts.
- Ethereum price remains shaky, struggling to regain momentum post-hack.
Bybit just pulled off one of the fastest recoveries in crypto history.
Less than a week after getting hit by a massive $1.5 billion Ethereum hack, the exchange has fully restored its reserves and reassured users that all funds are safe.
CEO Ben Zhou confirmed on February 24 that Bybit has replenished its lost 401,346 ETH (worth $1.13 billion) and is now operating at full 1:1 backing for customer assets.
Latest Update: Bybit has already fully closed the ETH gap, new audited POR report will be published very soon to show that Bybit is again Back to 100% 1:1 on client assets through merkle tree, Stay tuned. https://t.co/QLa1vOujM6
— Ben Zhou (@benbybit) February 24, 2025
This comes after what’s being called one of the largest hacks ever, allegedly linked to North Korea’s Lazarus Group. The breach drained Bybit’s hot wallet, causing the platform’s total reserves to drop by $5.2 billion in a single day.
This is Park Jin
— Sjuul | AltCryptoGems (@AltCryptoGems) February 22, 2025
A key player in Lazarus Group, North Korea’s elite cybercrime unit.
They are behind
⟜ Sony Pictures hack (2014)
⟜ Bangladesh Central Bank heist ($81M stolen)
⟜ And now, A $1.4B heist on Bybit (2025)
Here’s how he pull off one of the biggest crypto hacks… pic.twitter.com/jac7jPZAKE
Despite the chaos, Bybit acted fast—securing emergency funds, reopening deposits and withdrawals within 24 hours, and now, fully closing the ETH gap.
“Bybit has already fully closed the ETH gap,” Zhou said in a statement.
Where Did the $1.23 Billion Come From?
Recovering over a billion dollars in Ethereum isn’t easy, but Bybit made it happen through a mix of loans, private deals, and whale deposits.
Bybit succeeded where FTX didn’t because the crypto cooperative is stronger for decentralized regulatory capture than the centralized regulatory capture. This is a feature, not a bug.
— Jeff Park (@dgt10011) February 24, 2025
According to Lookonchain, Bybit pulled in 446,870 ETH ($1.23 billion) through:
- Over-the-counter (OTC) deals – 180,269 ETH
- Direct purchases from exchanges – 109,033 ETH
- Loans from crypto whales & institutions – 47,800 ETH
- Mysterious transfers from unknown sources – 28,000 ETH
Crypto Community Rallies Behind Bybit
This wasn’t just a solo effort. Some of the biggest players in crypto stepped in to help:
- Bitget loaned 40,000 ETH
- MEXC provided 12,653 stETH
- DWF Labs chipped in 2,200 ETH
- Mirana Ventures & Fenbushi Capital added 10,000 ETH each
Bybit also received nearly 4,500 ETH from other centralized exchanges, and even individual whales pitched in with deposits.
Crypto analyst Jeff Park (Bitwise) compared Bybit’s rapid comeback to the FTX collapse in 2022, pointing out that community-driven support helped prevent another disaster.
The reason is simple: the borderless crypto cooperative is retail, and non-Americans account for 95.8% of the world population.
— Jeff Park (@dgt10011) February 24, 2025
“Bybit succeeded where FTX didn’t. The crypto cooperative is stronger than centralized regulatory capture,” Park said.
What’s Next for Bybit?
Bybit isn’t stopping at just recovering funds. They’re rolling out a full Proof-of-Reserves (PoR) audit to prove every customer asset is backed 1:1.
The audit will use Merkle tree verification, a system that ensures full transparency without exposing individual user balances.
On top of that, Bybit has launched a bounty program, offering up to 10% of any recovered funds as a reward. If all $1.13 billion is retrieved, bounty hunters could earn up to $140 million.
Ethereum Struggles to Rebound
While Bybit is celebrating, Ethereum’s price is still shaky.
ETH briefly recovered after the hack but has since slipped back down. At the time of writing, ETH is trading at $2,731, down 2% in the past 24 hours.
This massive heist shook investor confidence, and it could take time for the market to fully stabilize.
That said, Bybit’s fast response and full recovery have prevented a much larger crisis, setting a new standard for how exchanges should handle hacks.
Bottom Line
Bybit lost $1.5 billion in a hack, but in less than a week, they bounced back—replenishing all lost ETH through loans, deposits, and industry support. They’re now prepping a full transparency audit while Ethereum’s price remains under pressure.
The crypto world just saw what a proper recovery looks like.
