In what is now the biggest crypto theft in history, Bybit, one of the world’s largest cryptocurrency exchanges, was hacked for over $1.46 billion. The attack targeted Bybit’s Ethereum multi-signature cold wallet, a crucial storage used for daily trading operations.
According to blockchain analytics firm Lookonchain, hackers exploited a phishing vulnerability, manipulating the signing process to drain $1.23 billion worth of ETH.
But what’s shocking isn’t just the scale of the theft – it’s how quickly Bybit bounced back.
How did Bybit pull off this near-impossible recovery? Who helped, and what does it mean for the crypto market? Let’s break it down.
Despite the major setback, Bybit’s CEO Ben Zhou led a rapid recovery. The exchange acted immediately, securing emergency loans, using investor deposits, and purchasing ETH to cover the losses. In just two days, Bybit fully replenished its holdings, showing its commitment to protecting users.
Zhou assured users in a post on X that their funds remained safe and highlighted Bybit’s financial strength.
Leading crypto firms, including Binance, Bitget, MEXC, Mirana Ventures, Fenbushi Capital, and MMDWF Labs, stepped in to support Bybit. Their efforts helped stabilize liquidity and restore investor confidence. To ensure transparency, Zhou confirmed that Bybit would soon release a Proof of Reserves (PoR) audit.
Bybit replenished the lost ETH using multiple sources:
This combined effort helped Bybit replace the stolen funds in record time.
While many praised Bybit’s quick response – some even comparing it to how Bitfinex handled its hack – not everyone was convinced. Crypto analyst Hermes Psychopomp questioned Bybit’s claim of fully recovering its losses, pointing out that the exchange used loans and still has debts to repay. He criticized the crypto industry for often making things sound better than they are.
Bybit’s fund recovery reduced artificial demand for ETH, causing its price to drop from $2,800 to around $2,700. Meanwhile, the exchange is actively tracking the stolen funds, which are suspected to be in the hands of North Korea’s Lazarus Group. Blockchain analysts warn that the hackers may use Bitcoin mixers to hide the stolen assets.
Bybit’s upcoming audit will play a key role in rebuilding investor trust and proving the exchange remains financially stable. The crypto community has largely praised Bybit’s quick response, which helped prevent a liquidity crisis and kept the platform running.
Bybit may have patched the wound, but the scars of the biggest crypto heist in history will linger for a long time.
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