Bybit has swiftly repaid the 40,000 Ether (ETH) loan it borrowed from Bitget, ensuring smooth withdrawals following the $1.4 billion hack on February 21, 2025. The attack, attributed to North Korea’s Lazarus Group, was one of the largest cryptocurrency exploits in history.

How Bybit Recovered From the $1.4B Hack

• Hackers drained $1.4 billion in crypto from Bybit, disrupting exchange operations.
• To ensure uninterrupted withdrawals, Bybit borrowed 40,000 ETH (~$104M) from Bitget.
• On-chain data confirmed Bybit repaid the loan by February 25, just three days later.

Bitget CEO Confirms No-Interest Loan Repayment

• Bitget CEO Gracy Chen verified the full repayment, emphasizing that:
  • The loan had no interest or collateral requirements.
  • It was a goodwill move to support a fellow exchange in crisis.
  • “We never doubted the return of the loan,” Chen stated.

How Bybit Restored Its Crypto Reserves

Bybit replenished 88% of the stolen funds (~$1.23B) through:

• Loans from industry peers.
• Whale deposits and asset purchases.
• Additional exchange liquidity injections.

Despite the massive hack, Bybit reassured users that:

• Proof-of-reserves auditor Hacken confirmed that Bybit’s reserves still exceed its liabilities.
• Withdrawals resumed normally, though investors withdrew over $5 billion following the attack.

Market Impact and Ongoing Investigations

• ETH price dropped over 7% in the aftermath, falling from $2,831 to $2,629.
• Blockchain investigator ZachXBT linked the exploit to the Lazarus Group, earning a 50,000 ARKM bounty for his findings.
• The stolen funds are likely headed to crypto mixers, a common tactic used by Lazarus to launder stolen assets.

The Bottom Line: Bybit Avoids Catastrophe

Bybit’s rapid repayment and reserve replenishment have helped restore trust after the $1.4 billion hack. However, with Lazarus Group still active, the attack raises serious concerns over centralized exchange security and the broader risks posed by sophisticated hacking groups.

While Bybit successfully navigated this crisis, the bigger concern is the growing sophistication of exchange hacks. North Korea’s Lazarus Group has repeatedly exploited centralized platforms, suggesting that even industry giants remain vulnerable. As security threats escalate, CEXs may need to re-evaluate their reliance on traditional wallet structures.