Bybit's Ethereum reserves are showing signs of recovery following a devastating security breach that resulted in the theft of over $1.4 billion in digital assets.
According to Julio Moreno, head of research at CryptoQuant, the cryptocurrency exchange has seen a net inflow of 139,000 ETH since the attack.
The security breach, which occurred on February 21, is regarded as the largest cryptocurrency theft to date. The attack compromised various assets, including Liquid Staking Ether (STETH), Mantle Staked ETH (mETH), and several ERC-20 tokens.
Reports suggest that the infamous North Korean hacker collective Lazarus Group may have been behind the breach, raising concerns over the security of crypto assets, even in cold wallets.
Despite the staggering losses, Bybit exchange has managed to recover nearly 50% of its pre-hack Ethereum reserves within just two days. The rapid replenishment is attributed to two key factors: the exchange's efforts to restore user confidence by repurchasing ETH from the market and customers' redepositing funds as trust in the platform stabilizes.
To reassure its users, Bybit has pledged to cover 100% of the stolen Ethereum. In addition, the exchange has launched a $140 million initiative aimed at tracking and recovering the stolen funds, a move that could lead to the partial retrieval of the lost assets.
Support from the broader cryptocurrency industry has also played a crucial role in Bybit's Ethereum reserves recovery. Major exchanges and industry leaders provided emergency transfers, including Binance, which sent 50,000 ETH, Bitget with 40,000 ETH, and Du Jun, co-founder of HTX Group, who contributed 10,000 ETH.