Crypto exchange Bybit repaid 40,000 Ether it borrowed from Bitget within three days, after a $1.4 billion hack disrupted the crypto exchange on Feb. 21.
Bybit was exploited on Feb. 21 in what has been reported as one of the largest cryptocurrency hacks in history, allegedly orchestrated by North Korea’s Lazarus Group. Despite the attack, Bybit replenished the stolen crypto assets and maintained operations without major disruption.
As part of its recovery effort, Bybit borrowed 40,000 Ether (ETH) worth about $104 million, from Bitget “as a loan to handle customer withdrawals,” Lookonchain reported on Feb. 22.
Source: Ben Zhou
Regaining investor trust with loan repayment
On Feb. 25, onchain data confirmed that Bybit had returned the borrowed 40,000 ETH to Bitget. The repayment was later verified by Bitget CEO Gracy Chen, who emphasized that the loan was extended without interest or collateral:
“No interest, no collateral—this was simply about supporting a peer in need. Great to see Bybit fully recovered, and we never doubted the return of the loan.”
Source: Lookonchain
Related: Bybit stolen funds likely headed to crypto mixers next: Elliptic
Bybit’s efforts to restore its reserves were significant, with the exchange receiving about 446,870 ETH — worth around $1.23 billion — through a combination of loans, whale deposits and asset purchases, according to Lookonchain. This accounted for almost 88% of the $1.4 billion in stolen funds.
Bybit borrowed to ensure that customers could withdraw funds at their convenience. Amid uncertainties, investors withdrew more than $5 billion on Feb. 22.
Proof-of-reserve auditor Hacken said the crypto platform’s reserves still exceed its liabilities and user funds remain fully backed.
According to CoinGecko data, ETH fell over 7% in seven hours following the hack, dropping from $2,831 to $2,629, and traded at $2,473 at the time of writing.
Tracking down the biggest hack in crypto
Crypto investigator ZachXBT linked the Bybit exploit to North Korea’s Lazarus Group, earning a 50,000 Arkham (ARKM) tokens bounty for his findings. Further analysis suggested potential connections between the Bybit attack and past hacks on BingX and Phemex.
Source: ZachXBT
While investigations continue, security analysts suspect the stolen funds may be funneled through cryptocurrency mixing services, a tactic commonly used by the Lazarus Group to obscure transaction trails.
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