Bybit Fully Recovers from $1.5 Billion Hack, Restores Asset Backing and Withdrawal Services

Bybit's CEO, Ben Zhou, has announced that the exchange has fully addressed the security breach that resulted in the theft of nearly $1.5 billion in Ethereum (ETH) and Lido Staked Ether (stETH) last week.

Zhou confirmed that the company has reinstated a 1:1 backing of all customer assets following the unprecedented hack.

These statements were supported by a proof-of-reserves audit conducted by blockchain security firm Hacken on February 23, 2025. The report confirmed that Bybit now holds more than 100% of the reserves needed to cover its liabilities, enhancing user and stakeholder trust.

The CEO explained that the hackers exploited an ETH transfer between Bybit’s cold and warm wallets. Blockchain investigator ZachXBT traced the hack back to the Lazarus Group, a notorious North Korean hacking organization.

Despite the significant breach, Bybit was able to manage an exceptionally high volume of withdrawal requests. Within just 10 hours of the incident, the exchange processed over 350,000 withdrawal requests, completing 99.9% of them by 1:45 AM UTC. The company now reports that all withdrawal services are functioning normally, with more than 580,000 requests successfully processed.

Additionally, Bybit has introduced a recovery bounty program, offering 10% of any recovered funds as a reward.