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Bybit swiftly repaid the 40,000 ETH loan from Bitget, ensuring smooth withdrawals after a $1.4 billion hack attributed to the Lazarus Group.
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Crypto exchange Bybit has repaid the 40,000 Ether it borrowed from Bitget within three days, following a $1.4 billion hack that disrupted the crypto exchange on Feb. 21.
Bybit was exploited on Feb. 21 in what has been reported as one of the largest cryptocurrency hacks in history, allegedly orchestrated by North Korea’s Lazarus Group. Despite the attack, Bybit has fully replenished the stolen crypto assets and maintained operations without major disruptions.
As part of its recovery effort, Bybit borrowed 40,000 Ether (ETH) from Bitget “as a loan to handle customer withdrawals,” worth roughly $104 million, Lookonchain reported on Feb. 22.
Source: Ben Zhou
Regaining investor trust with loan repayment
On Feb. 25, onchain data confirmed that Bybit had successfully returned the borrowed 40,000 ETH to Bitget. The repayment was later verified by Bitget CEO Gracy Chen, who emphasized that the loan was extended without interest or collateral:
“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.”
Source: Lookonchain
Related: Bybit stolen funds likely headed to crypto mixers next: Elliptic
Bybit’s efforts to restore its reserves were significant, with the exchange receiving approximately 446,870 ETH — worth around $1.23 billion — through a combination of loans, whale deposits and asset purchases, according to Lookonchain. This accounts for nearly 88% of the $1.4 billion in stolen funds.
Bybit borrowed the funds to ensure customers could withdraw funds at their convenience. Amid uncertainties, investors withdrew more than $5 billion on Feb. 22.
Proof-of-reserve auditor Hacken says the crypto platform’s reserves still exceed its liabilities, and user funds remain fully backed.
According to CoinGecko data, ETH fell over 7% in seven hours following the hack, dropping from $2,831 to $2,629, and traded at $2,473 at the time of writing.
Magazine: ETH whale’s wild $6.8M ‘mind control’ claims, Bitcoin power thefts: Asia Express
This article first appeared at Cointelegraph.com News
