Major crypto exchange Bybit has successfully refilled its reserves following the $1.4B ETH hack. The hack occurred on February 21 and took advantage of a transfer between Bybit's cold and warm wallets.
Hackers, reportedly related to North Korea's Lazarus Group, stole almost 401,000 ETH. Bybit immediately covered the shortage with loans, significant deposits, and Ethereum purchases. Lookonchain, a blockchain watcher, revealed that the exchange had nearly narrowed the "ETH gap." CEO Ben Zhou assured users that the exchange is financially stable. Withdrawals and unaffected wallets continue to operate properly. Bybit is cooperating with law enforcement to recover the stolen funds.
This event demonstrates the growing security risks in the cryptocurrency business. Chainalysis reports that $2.2B was stolen from crypto platforms in 2024, a 21% rise over 2023. North Korean hackers stole $1.34B in 47 incidents.
Despite the enormity of the intrusion, Bybit's quick response averted a liquidity catastrophe. However, the event highlights the ongoing security threats that bitcoin exchanges face.
