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Bybit Reserves ‘Fully Replenished ‘ After Record $1.5bn Crypto Hack
- Cryptocurrency exchange Bybit has recovered its reserves, following a $1.5 billion crypto hack by North Korean hackers, labeled as the largest-ever crypto theft.
- Bybit assured its clients that it was solvent and client funds were secure despite the hack.
- Within 72 hours, Bybit managed to replenish its reserves by securing nearly 447,000 ether tokens through emergency funding and large deposits.
- A proof of reserves audit confirmed that Bybit restored reserves, exceeding a 100 percent collateralization ratio for major assets like bitcoin, ether, solana, tether, and USDC.
- Bybit's restoration of reserves did not recover the stolen funds, but the company is committed to strengthening the ecosystem and recovering from the incident.
- The hack occurred during an internal transfer when funds were moved from a secure cold wallet to an active warm wallet, allowing hackers to intercept the transaction.
- The Lazarus Group, a North Korean state-backed hacking gang, was identified by Arkham Intelligence and Elliptic as being behind the theft.
- Bybit has frozen over $42.89 million and offered a 10 percent bounty for the return of stolen funds, though the odds of recovery from the Lazarus Group are slim.
- Historically, North Korea has been linked to high-value crypto thefts, using stolen assets to fund its nuclear program and other illicit activities.
- Various notable crypto thefts over the years include incidents like the 2021 Poly Network hack and the 2016 Bitfinex hack, highlighting ongoing challenges in the industry.
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