Bybit CEO Claims Exchange Has 'Fully Closed the ETH Gap' After $1.4B Lazarus Hack

Bybit CEO Ben Zhou announced on February 24, 2025, that the cryptocurrency exchange has fully replaced the $1.4 billion worth of Ether (ETH) that was stolen in a hack on February 21. Zhou took to X (formerly Twitter) to share that Bybit’s client assets are once again fully backed 1:1, thanks to a new Merkle tree-based proof-of-reserve report, which will be published shortly.

The hack, attributed to the North Korean state-backed Lazarus Group, sent shockwaves through the crypto industry as it marked the largest crypto theft in history, with the stolen Ether representing over 60% of all crypto funds stolen in 2024. However, in a move that underscores Bybit’s resolve to restore trust with its users, the exchange has swiftly managed to recover a significant portion of the stolen assets.

According to blockchain analytics firm Lookonchain, Bybit received a total of 446,870 Ether, valued at around $1.23 billion, between February 22 and 23, making up nearly 88% of the stolen funds. Lookonchain’s analysis identified multiple sources for the Ether influx, including loans, whale deposits, and direct purchases.

Among the key transactions, Lookonchain found that Bybit-linked wallet address “0x2E45...1b77” had purchased 157,660 Ether, worth approximately $437.8 million, from crypto investment firms Galaxy Digital, FalconX, and Wintermute via over-the-counter (OTC) trades. Additionally, another $304 million worth of Ether was acquired using wallet address “0xd7CF...A995” through centralized and decentralized exchanges. Data from Arkham Intelligence suggests that the latter address is also connected to Bybit, as it interacted with hot wallets from Binance and MEXC.

The first purchase from the “0x2E45...1b77” wallet took place on February 22 at 4:44 pm UTC, according to Lookonchain.

Despite the significant hack, which caused the price of Ether to drop by over 7% in just seven hours — falling from $2,831 to $2,629 — the cryptocurrency has since made a partial recovery, trading at around $2,765 at the time of writing, according to CoinGecko data.

Meanwhile, Bybit’s total assets remain robust. DefiLlama data reports that Bybit’s total assets currently stand at $10.9 billion, and the platform’s customer withdrawals surpassed $5.3 billion on February 22. Proof-of-reserve auditor Hacken has verified that Bybit’s reserves continue to exceed its liabilities, ensuring that user funds remain fully backed and secure.

Bybit's rapid response to the hack and the subsequent recovery of stolen assets has demonstrated the platform’s commitment to safeguarding customer funds and maintaining transparency. As the exchange prepares to release its proof-of-reserve report, it appears to be taking all necessary steps to reassure investors and customers alike in the aftermath of one of the most significant hacks in crypto history.