Bybit Purchases $742 Million ETH After $1.4B Hack, ETH Price Recovers 6%

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Bybit has taken a bold step after suffering one of the biggest hacks in crypto history. Following the massive $1.4 billion security breach, the exchange has reportedly purchased $742 million of Ethereum (ETH) to recover from the attack. This has made the ETH price recover by 6% from last week’s drop.  

Bybit’s Buys of $742 M ETH After the Hack

According to blockchain analytics firm Lookonchain, Bybit has bought 266,694 ETH worth around $742 million. The move appears to be part of the exchange’s effort to stabilize its reserves after losing a significant amount of funds to the hack. 

The attack, carried out by the North Korean state-backed hacker group Lazarus, targeted Bybit’s multisignature cold wallet, resulting in the loss of nearly $1.4 billion.

As per Lookonchain’s analysis, Bybit received 446,870 ETH, worth approximately $1.23 billion, from various sources, including loans, large investor deposits, and direct purchases. 

This amount accounts for almost 87% of the total stolen funds, suggesting that Bybit is actively working to replace the missing assets.

Timeline Of Ethereum Purchases

Further blockchain data reveals that a wallet address linked to Bybit, identified as 0x2E45, purchased 157,660 ETH, valued at $437.82 million, from well-known crypto trading firms such as Galaxy Digital, FalconX, and Wintermute through over-the-counter (OTC) transactions. 

Meanwhile, the second wallet address, 0xd7CF, believed to be associated with Bybit, acquired 109,033 ETH, worth around $304.12 million, from both decentralized (DEXs) and centralized exchanges (CEXs).

Efforts to Restore Stability

Bybit has wasted no time in bouncing back from the massive security breach. In a recent tweet, CEO Ben Zhou confirmed that the exchange has fully restored the $1.4 billion worth of Ether lost in the Feb. 21 hack.

To rebuild user trust, Bybit is set to release a new audited proof-of-reserve report. Using a Merkle tree system, the report will verify that all client assets are securely backed at a 1:1 ratio, ensuring full transparency and safety.

Ethereum Price Analysis

Ethereum has bounced back by nearly 6% since last week’s attack, which caused its price to drop. However, as the new week begins, ETH has slipped by 2%, now trading around $2,730.

If the decline continues, ETH could fall further and test its next support level at $2,450.

Eventually, the daily RSI also points to a bearish trend, currently at 46. It was rejected at the neutral 50 level on Sunday and is now moving downward, signaling weakness.

On the flip side, if ETH regains momentum, it could push higher and make another attempt to reach the $3,000 mark.