According to blockchain data from Lookonchain, cryptocurrency exchange Bybit was able to recover its $1.46 billion loss from a recent cyberattack via a combination of loans, whale deposits, and Ethereum (ETH) purchases.
Lookonchain said in an X post on Monday that Bybit had received 157,660 ETH (about $437.8 million) from a single address, most likely as a result of over-the-counter purchases.
Read also: Bybit loses almost $1.5 billion in landmark crypto heist, North Korea tops key suspects
Breakdown of the contribution
An organisation that purchased ETH from both centralised and decentralised exchanges contributed an additional 109,033 ETH ($304.1 million).
Over $127 million in ETH loans were made by whales and institutions; Bitget, a cryptocurrency exchange, contributed 40,000 ETH ($106 million), while MEXC contributed 12,653 stETH ($33.9 million).
Another address sent 22,609 ETH ($61.9 million), which could have been from an over-the-counter purchase.
Mirana Ventures sent 10,000 ETH ($28 million), an unidentified company sent 20,000 ETH ($53.7 million), and another account that may have been connected to Fenbushi Capital sent the same sum. Users connected to “@yuchao” (2,499 ETH) and DWF Labs (2,200 ETH) contributed less.
Audited proof-of-reserves report to be ready soon to regain users’ trust
A fresh audited proof-of-reserve report will be released by Bybit in an effort to restore user confidence.
To ensure complete transparency and safety, the report will use a Merkle tree structure to confirm that all client assets are safely backed at a 1:1 ratio.
Bybit CEO Ben Zhou wrote on X that the exchange has “fully closed the ETH gap” in response to Lookonchain’s statement. There will be a fresh audited proof-of-reserves report “very soon to show that Bybit is again back to 100% 1:1 on client assets through Merkle tree,” he continued.
Direct on-chain connections between the Bybit attack and the most recent Phemex breach were discovered by anonymous blockchain researcher ZachXBT.
Using the same initial theft addresses, the attackers combined funds from both instances, according to on-chain data. This strategy is comparable to that employed by the Lazarus Group, which is supported by North Korea, to link several exchange thefts.
After one of the largest attacks in cryptocurrency history, Bybit apparently bought $742 million worth of Ethereum (ETH) to recover. As a result of this action, the price of ETH has recovered six percent from its decline the week before.
Read also: Altvest Capital acquires one bitcoin, targets $10 million to expand holdings
Bybit paid almost $742 million for 266,694 ETH
Blockchain analytics company Lookonchain claims that Bybit paid almost $742 million for 266,694 ETH. The action seems to be a part of the exchange’s attempt to stabilise its reserves following the hack, which caused it to lose a substantial sum of money.
The attack, which was purportedly carried out by the state-sponsored hacking group Lazarus in North Korea, targeted Bybit’s multisignature cold wallet and caused the loss of about $1.5 billion.
According to Lookonchain’s study, Bybit obtained 446,870 ETH, or roughly $1.23 billion, from a number of sources, including direct purchases, loans, and deposits from major investors.