Bybit Recovers from $1.5 Billion Ethereum Hack, Restores 1:1 Asset Backing

Bybit Restores Full Reserves After Massive Ethereum Hack

Following one of the largest crypto exchange security breaches, Bybit has announced that it has fully closed the Ethereum gap caused by the recent $1.5 billion exploit. The company has also confirmed that an updated Proof of Reserves (PoR) audit will soon be published, demonstrating that all client funds remain 1:1 via Merkle tree verification.

What Happened?

Earlier this week, Bybit suffered a major security breach, resulting in the theft of approximately 401,000 ETH ($1.5 billion) from one of its cold wallets. The exchange responded swiftly, assuring customers that their assets remained fully backed and secure.

Key Developments Since the Hack:

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What Does This Mean for Bybit Users?

Market Reaction & What’s Next?

The crypto market has responded positively to Bybit’s quick action, with many traders and analysts noting the exchange’s resilience in handling the crisis.

Looking ahead, Bybit’s new PoR report will be a key milestone, confirming the exchange’s financial standing and security improvements. As crypto security threats continue to evolve, Bybit’s response serves as a critical case study for how centralized exchanges handle large-scale cyberattacks.