The Bybit crypto exchange recently experienced a hack over the weekend, resulting in a loss of nearly $700 million worth of Ethereum. However, the exchange quickly sprung into action and managed to recover a significant amount of Ethereum within just 48 hours of the hack. Bybit was able to amass a total of 254,830 ETH through OTC deals and loans from various sources, including institutions and exchanges.
The funds acquired by Bybit post-hack include 132,178 ETH from OTC acquisitions worth $367 million and 122,652 ETH from institutional loans valued at $326 million. These deals were made with companies such as Galaxy Digital, FalconX, Wintermute, Bitget, MEXC, Binance, and DWF Labs. Bybit CEO Ben Zhou reassured market participants that the exchange has returned to normal operations and is back to a 100% 1:1 status on client assets through merkle tree auditing.
The hacker responsible for the breach managed to launder 40,944 ETH ($115 million) into Bitcoin and other assets using various platforms. Despite this, the hacker still holds a substantial portion of the stolen funds, with 458,451 ETH ($1.29 billion) representing 91.7% of the total amount stolen. This incident has raised concerns about exchange security and the effectiveness of asset recovery strategies in the crypto ecosystem.
In response to the hack, Bybit has announced a Recovery Bounty Program aimed at tracking and reclaiming the stolen funds. The program offers a 10% reward on recovered assets, potentially reaching up to $140 million if the full amount is successfully recovered. Bybit has also engaged in a coordinated effort with industry peers to freeze nearly $43 million within just two days of the hack. This collaboration highlights the unity within the crypto community when it comes to addressing security breaches and recovering stolen assets.
Overall, Bybit’s quick response to the hack and subsequent recovery of a significant amount of Ethereum demonstrates the resilience of the exchange and its commitment to protecting customer assets. The Recovery Bounty Program and collaboration with industry peers show that exchanges are taking proactive measures to address security concerns and ensure the safety of user funds in the crypto ecosystem. As the industry continues to evolve and innovate, it is essential for exchanges to prioritize security measures and recovery strategies to protect against potential hacks and breaches.
