Just days after suffering a $1.4 billion security breach, leading bitcoin exchange Bybit has effectively repaid a 40,000 ETH debt to Bitget. Bybit’s quick refund demonstrates its commitment to financial stability and user confidence in the face of one of the biggest crypto attacks in history.
Linked to the infamous Lazarus Group, the incident took place on February 21. To guarantee continuous consumer withdrawals, Bybit obtained a loan from Bitget. On-chain data shows that the borrowed money—which at the time amounted to about $104 million—was totally repaid by February 25. Later, Bitget CEO Gracy Chen confirmed the repayment, emphasizing that the industry supported the loan’s granting without interest or collateral.
After the hack, Bybit secured over 446,870 ETH—worth roughly $1.23 billion—by means of loans, big contributions from whales, and asset buys, restoring liquidity. This initiative effectively restored almost 88% of the pilfers, stabilizing activities and reducing investor worries.
Following the attack, the exchange experienced large client withdrawals; on February 22, consumers withdrew over $5 billion. Bit’s proactive measures to preserve financial stability helped reassure investors and rebuild trust in its platform.
Proof-of-reserve auditor Hacken verified that Bybit’s reserves remain enough to cover its liabilities, so customers assets are totally guaranteed despite the volatility of the market.
With Ethereum’s price declining almost 7% within hours of the attack, from $2,831 to $2,629, the wider crypto market also responded to the tragedy. ETH was trading at about $2,493 at the time of writing, a reflection of continuous market volatility.
ZachXBT, a crypto investigator, connected the Bybit hack to the Lazarus Group and received a 50,000 Arkham token reward for his discoveries. Analysts believe that fraudsters often use crypto mixers, a strategy to hide transaction tracks, to pass the stolen money.
Bitwise’s quick efforts at recovery and payback show resiliency under hardship, therefore supporting its reputation in the crypto space. The exchange remains committed to enhancing security measures and preserving user confidence as investigations continue.
