Bybit Hack Update: Reserves Under Pressure After $1.4B Loss – Will It Recover?

The recent Bybit hack has sent shockwaves through the crypto industry, with attackers stealing $1.4 billion in digital assets. The breach triggered widespread panic, but it also led to an unexpected show of support as large amounts of BTC, ETH, XRP, and USDT flowed into Bybit. Many saw this as a sign that investors and platforms were backing the exchange despite the crisis.

Hacker Now Holds More ETH Than Vitalik Buterin

A major concern is that the hacker now controls over 500,000 ETH, more than Ethereum co-founder Vitalik Buterin Vitalik Buterin   Vitalik Buterin is a well-known tech geek, influencer, and computer programmer. To promote the blockchain, he started Bitcoin Magazine and provided blockchain information for cryptocurrency investors. In 2015, he co-founded Ethereum, a blockchain platform that contributed to decentralized finance.   Quick Facts   Full name Vitaly Dmitrievich Buterin Birth 31-01-1994, Kolomna, Russia Education University of Waterloo Wife/Partner To be updated / Not Married Famous for Ethereum, ETH, Blockchain advocate/promoter  Net Worth $1B (refer for realtime)   Buterin recognized the need for decentralized finance and used smart contracts to publish the Ethereum whitepaper.  His contributions paved the way for Ethereum's transition to Proof-of-Stake, which proved to be scalable and effective. Furthermore, he introduced Ether (ETH), the blockchain platform's native coin. A Timeline of Vitalik’s Career Co-founded Bitcoin Magazine (2011) – Established one of the first crypto publications, writing extensively on Bitcoin and blockchain. Authored Ethereum Whitepaper (2013) – Proposed a blockchain with smart contract functionality for decentralized applications (dApps). Co-founded Ethereum (2015) – Launched Ethereum after a successful $18M ICO, revolutionizing the blockchain ecosystem. Developed Ethereum Virtual Machine (2015–2016) – Created the EVM, enabling developers to build and deploy smart contracts. Worked on Ethereum Scalability (2017–2021) – Contributed to Layer 2 solutions like Rollups, Plasma, and Sharding. Led Ethereum’s Transition to Proof-of-Stake (2018–2022) – Helped develop and implement Ethereum 2.0, merging the Beacon Chain in 2022. Blockchain Research & Cryptography (2016–Present) – Focused on zk-SNARKs, privacy tech, and decentralized governance models. Philanthropy & Crypto Advocacy (2017–Present) – Donated millions in crypto for pandemic relief, AI research, and financial inclusion.   Key Achievements of Ethereum's Co-founder   Year  Achievements Details 2014 Thiel Fellowship Awarded a $100,000 grant by Peter Thiel to work on Ethereum. 2018 Fortune 30 Under 30 Recognized as one of the most influential young leaders in technology. 2018 World Technology Award in IT Software Honored for contributions to blockchain and Ethereum’s development. 2021 Time 100 Most Influential People Recognized for his impact on the global crypto and blockchain ecosystem. 2022 Ethereum’s Transition to Proof-of-Stake Successfully led Ethereum’s transition from Proof-of-Work to Proof-of-Stake.   Other Useful links to connect with Vitalik Buterin   Platform Link X (formerly Twitter) https://twitter.com/VitalikButerin GitHub https://github.com/vbuterin Ethereum Official Website https://ethereum.org Vitalik’s Blog https://vitalik.ca     EntrepreneurCrypto and Blockchain Expert ’s reported holdings of 240,000 ETH. The stolen assets are spread across 53 wallets, closely monitored by security teams. Since this is a high-profile attack, selling such a large amount without getting caught will be difficult.

Despite the situation, Bybit CEO Ben Zhou assured users that no customer funds were lost and that the exchange remains financially stable. He also confirmed that Bybit successfully processed over 350,000 withdrawal requests following the hack.

Was Binance Involved? CZ Shuts Down Rumors

Some speculated that Binance might have helped Bybit stabilize by transferring Ethereum to the exchange. However, Binance CEO Changpeng Zhao (CZ) quickly denied this. In a post on X (formerly Twitter), he explained that the ETH inflows were simply user transactions or whale activity, not Binance stepping in to assist.

Crypto analyst Anndy Lian praised Binance’s leadership but advised his followers to withdraw funds from Bybit, not due to a lack of trust but as a precaution against any unexpected risks.

Meanwhile, on-chain data from Lookonchain showed that a whale withdrew 11,800 ETH ($31 million) from Binance and deposited it into Bybit’s cold wallet. Soon after, another 36,000 ETH ($96.5 million) moved from Binance’s hot wallet to Bybit. Reports suggest these may be loans aimed at helping Bybit manage customer withdrawals.

Whale Moves Shake Up the Market

Despite concerns, large investors and rival exchanges have backed Bybit with major deposits. Whale Alert reported that an unknown wallet sent nearly 3,000 BTC ($285 million) to Bybit, while another transferred 39,998 ETH ($105.5 million).

Bitget also contributed significant funds, and HTX co-founder Jun Du announced he would deposit 10,000 ETH into Bybit, promising not to withdraw it until next month as a sign of support.

Withdrawals Surge as Users React

While some whales and platforms are supporting Bybit, many users remain cautious. Arkham Intelligence reported that Galaxy Digital’s OTC trading desk withdrew 25,000 ETH ($67 million) and 200,000 USDC within hours of the attack. Another 700 BTC ($68.8 million) was also withdrawn by an anonymous wallet, adding to the growing outflow of assets.

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Bybit Still Holds Billions—What’s Next?

Even after the hack and withdrawals, Bybit still holds significant reserves. Reports show it has 450,462 ETH ($1.2 billion), along with BTC, USDT, USDC, and MNT, totaling billions in assets.

Bybit is now focused on restoring confidence and stabilizing its operations. The market is watching closely to see how the exchange recovers from one of the biggest crypto hacks in history.