CEO Ben Zhou confirmed that Bybit has successfully filled the gap in its Ethereum (ETH) reserves following last week’s $1.4 billion hacker attack.
Bybit CEO: ETH Reserves Completely Refreshed, Audited Proof of Reserves Report Coming Soon
The exchange now plans to release an audited proof of reserve (PoR) report to demonstrate that customer assets are fully backed.
“Bybit has already completely closed the ETH gap,” Zhou said. “A new audited PoR report will be released very soon to show that Bybit has returned 100% 1:1 to customer assets via a Merkle tree. Stay tuned.”
$1.4 Billion Hack: The Biggest in Crypto History
On February 21, Bybit suffered a historic security breach, losing over 400,000 ETH after attackers exploited vulnerabilities in its multi-signature cold wallet system.
The hackers manipulated the approval process by using a fake user interface to mask a malicious smart contract, ultimately diverting funds to their own wallets.
This attack raised concerns about Bybit’s liquidity, raising questions about its ability to meet withdrawal requests. However, on-chain data from Lookonchain suggests that Bybit regained its reserves through a combination of the following:
- Emergency loans from industry partners
- Huge ETH deposits from crypto whales
- Over-the-counter (OTC) ETH purchases
To prevent a liquidity crisis, Bybit provided short-term “bridge loans” to cover stolen ETH and maintain withdrawal requests.
Zhou had previously reassured users that Bybit remained solvent, stating that the exchange’s treasury and retained earnings were sufficient to cover the loss even if the stolen funds were never recovered.
With the replenished reserves, withdrawals are now operating normally and the upcoming audited PoR report aims to further reassure users.
*This is not investment advice.
