What to know:

• Bybit has returned to a 1:1 backing of client assets and has fully closed the “ETH gap” it faced after an unprecedented $1.4 billion hack.
• Address activity indicates over $400 million were purchased through over-the-counter trading, with another $300 million sourced directly from exchanges.

Bybit announced its return to a 1:1 backing of client assets after enduring a notable $1.4 billion hack. The exchange has recently secured 446,870 ether (ETH), valued at $1.23 billion, through various means, including loans and large deposits.

Discussion on selling activities:

• Transactions suggest that over $400 million were obtained via over-the-counter trading, with $300 million directly from exchanges, while an additional $300 million was requested as loans.

“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.

ETH prices experienced a rise of up to 4% over the weekend amidst the buying activity, though they saw a decline of 2% in the subsequent 24 hours.

Separately, Bybit indicated that all deposit and withdrawal activities have returned to normal, with deposits slightly surpassing withdrawals as a sign of regained market confidence. The heist targeted one of Bybit’s offline wallets, which are typically deemed secure.

Hacker techniques involved exploiting a manipulated user interface and URL, which allowed them to modify the smart contract logic and divert funds to an unidentified address.

ZachXBT linked the hack to the hacking group Lazarus, known for a series of high-profile crypto thefts.