In a swift and strategic response to one of the biggest crypto heists in history, Bybit has repaid a 40,000 ETH loan, worth approximately $104 million to Bitget, just three days after suffering a staggering $1.4 billion hack. The repayment, which came without interest or collateral, signals Bybit’s resilience and determination to restore investor trust in the wake of the crisis.
A Bold Recovery Strategy Amid Crisis
The attack on Bybit, allegedly orchestrated by North Korea’s infamous Lazarus Group, sent shockwaves through the crypto community on Feb. 21. Despite the magnitude of the exploit, Bybit acted swiftly, securing emergency liquidity and ensuring uninterrupted operations.
According to on-chain data, the exchange mobilized 446,870 ETH (roughly $1.23 billion) through a mix of loans, whale deposits, and asset acquisitions effectively replenishing 88% of the stolen assets. One of the key steps in this recovery was the short-term 40,000 ETH loan from Bitget, which helped Bybit maintain liquidity and meet withdrawal demands.
Investor Panic Triggers $5 Billion in Withdrawals
The security breach triggered a wave of uncertainty, with investors scrambling to withdraw over $5 billion in just 24 hours. Fears of insolvency loomed, but Bybit reassured users by maintaining full operations and securing reserves to meet demands.
Hacken, a blockchain security auditor, later confirmed that Bybit’s reserves remained greater than its liabilities, underscoring the exchange’s financial strength even in crisis mode.
Bitget CEO Gracy Chen acknowledged the repayment on Feb. 25, praising Bybit’s quick turnaround:
“No interest, no collateral—this was simply about supporting a peer in need. Great to see Bybit fully recovered, and we never doubted the return of the loan.”
This transparent cooperation between major exchanges highlighted a rare moment of solidarity in an industry often criticized for its competitive and fragmented nature.
The Hunt for the Stolen Funds—Where Is the Money Going?
While Bybit is rebuilding, investigators are tracking the 400,000 ETH stolen in the exploit. Blockchain detective ZachXBT linked the attack to Lazarus Group, a state-sponsored hacking organization notorious for draining crypto platforms and laundering assets through mixing services.
For his work, ZachXBT earned a 50,000 ARKM token bounty from Arkham Intelligence, reinforcing the role of on-chain analysts in fighting cybercrime. Further analysis suggests potential links between the Bybit hack and previous attacks on BingX and Phemex, indicating a coordinated assault on centralized exchanges.
As investigations continue, security experts warn that the stolen funds may soon be funneled through crypto mixers, making them harder to track. This method, frequently used by Lazarus, helps cybercriminals obscure transaction trails before offloading funds into fiat or decentralized exchanges.
What This Means for the Crypto Industry
Bybit’s rapid repayment and fund recovery efforts have set a strong precedent for how exchanges can respond to catastrophic breaches. While the $1.4 billion hack underscores the persistent vulnerabilities in centralized platforms, the event also highlights the importance of financial resilience, emergency liquidity planning, and inter-exchange collaboration.
However, the bigger question remains: Can the industry prevent future Lazarus-style attacks? With regulators tightening scrutiny on crypto security and AML measures, exchanges will need to fortify their defenses and enhance fund tracking mechanisms to stay ahead of increasingly sophisticated cybercriminals.
For now, Bybit’s actions demonstrate that a major exchange can survive a billion-dollar breach but for how long will the industry keep relying on damage control instead of prevention?
