Bybit’s $1.4 Billion Hack: The Comeback Story You Didn’t Know You Needed!

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So, here we are. Bybit’s co-founder and CEO, Ben Zhou, has decided to grace us with the news that they’re back to backing client assets on a 1:1 basis. You know, like a good neighbor who finally decides to pay you back for that pizza you lent them three months ago. And guess what? They’ve closed the ETH gap from that little $1.4 billion hack last Friday. No biggie, right? Just a casual billion-dollar oopsie!

Ben also mentioned that a shiny new audited Proof of Reserves (PoR) report is on the way. They’re using a Merkle tree verification method. Sounds fancy, doesn’t it? I mean, who doesn’t love a good tree? 🍃

According to their X page, ETH reserves are almost fully restored. Deposits and withdrawals are back to normal. They wrote:

“We’re close to 100% on our ETH reserves, and deposits & withdrawals are back to normal. Through it all, the crypto community, our partners, and our users have shown unwavering support — thank you. We know where our funds have gone, and we’re committed to turning this experience into an opportunity to strengthen the ecosystem. Initiatives are coming to help the crypto space grow stronger.”

On-Chain Data Reveals Fund Recovery Sources

Now, let’s talk numbers. On-chain analytics firm Lookonchain has revealed that Bybit has snagged about 446,870 ETH (worth a cool $1.23 billion) through loans, large deposits, and direct purchases. It’s like a yard sale, but instead of old lawn chairs, they’re collecting ETH. Who knew?

Since being hacked, #Bybit has received ~446,870 $ETH($1.23B) through loans, whale deposits, and ETH purchases.#Bybit has nearly closed the gap.

— Lookonchain (@lookonchain) February 24, 2025

According to Lookonchain, the ETH came from all sorts of places. Over-the-counter (OTC) trading, direct exchange purchases, and loans. It’s like a financial buffet, and they’re piling their plates high! 🍽️

Lazarus Group Linked to Hack as Skepticism Emerges

Now, let’s get to the juicy part. Bybit was the latest victim of a hack last Friday. Their offline cold wallets were breached, leading to the unauthorized withdrawal of $1.4 billion in ETH. I mean, who needs a heist movie when you have real life, right?

The attackers pulled off a classic trick with a fake user interface and URL. They manipulated smart contract rules like a magician pulling a rabbit out of a hat. Poof! Funds gone! 🐇✨

Blockchain investigator ZachXBT has linked this hack to North Korea’s Lazarus Group. Apparently, they’re mixing stolen funds from this hack with another one. It’s like a criminal cocktail party! 🍹

But wait, there’s more! Crypto commentator MartyParty claims there was no hack at all. He suggests it’s all a cover-up for corruption among major centralized exchanges. Because, of course, that’s the narrative we all needed. “There was no hack. It’s all narrative to hide the biggest corruption in CEX history involving all major exchanges and their leverage positions on $ETH,” he stated. Sounds like a plot twist, doesn’t it?

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2025-02-24 13:08