Bybit CEO Ben Zhou recently confirmed that the exchange has restored Ethereum (ETH) reserves, bringing client assets back to a 1:1 ratio. After a recent security breach that resulted in the loss of $1.4 billion in funds, Bybit replenished its reserves through over-the-counter (OTC) purchases, whale deposits, and loans from major crypto platforms.
Blockchain analytics firm Lookonchain reported that Bybit purchased 157,660 ETH worth roughly $437.8 million from investment firms like FalconX and Wintermute via OTC transactions. In addition, the exchange acquired another $304 million in ETH from centralized and decentralized exchanges, effectively closing the ETH gap on its platform.
To further recover the stolen funds, Bybit has initiated a 10% bounty program, offering a reward of up to $140 million to ethical hackers and cybersecurity experts who assist in the recovery process. The exchange has also collaborated with various crypto platforms to freeze and recover stolen assets, successfully freezing approximately $43 million through partnerships with entities like Tether, ThorChain, and CoinEx.
Despite these recovery efforts, the attackers have already begun laundering the stolen funds. Blockchain forensics firm Elliptic noted that the methods used closely resemble techniques employed by the Lazarus Group, a notorious cybercriminal organization. The hackers have converted stolen tokens into ETH through decentralized exchanges to avoid asset freezing, with funds spread across 50 wallets and being systematically emptied.
On-chain investigator ZachXBT discovered that the attackers attempted to launder funds using memecoins on Solana’s Pump.Fun platform. The Solana Foundation and Pump.Fun took swift action to block and remove the token, preventing further cashouts. Bybit commended the community-driven security measures, emphasizing the importance of collaboration in maintaining the integrity of the crypto space.
