Bybit CEO Ben Zhou confirmed that the exchange restored Ethereum (ETH) reserves following the recent $1.4 billion security breach.
In a Feb. 24 post on X, Zhou announced that Bybit will soon release an updated proof-of-reserves report demonstrating that it now holds client assets 1:1.
He stated:
“Bybit has already fully closed the ETH gap, new audited POR report will be published very soon to show that Bybit is again Back to 100% 1:1 on client assets through merkle tree.”
Zhou’s statement confirmed a report from blockchain analytics firm Lookonchain. The firm stated that Bybit replenished its reserves through over-the-counter (OTC) purchases, whale deposits, and loans from major crypto platforms, including Binance, Bitget, and HTX.
Lookonchain said the embattled exchange purchased 157,660 ETH worth roughly $437.8 million from investment firms such as FalconX and Wintermute via OTC transactions.
Additionally, it acquired another $304 million in ETH from centralized and decentralized exchanges.
Fund recovery efforts
While the exchange might have closed its platform’s ETH gap, it has stepped up its recovery efforts by initiating a 10% bounty program and freezing some stolen funds.
On Feb. 22, the crypto trading platform launched a bounty program that encouraged ethical hackers and cybersecurity experts to assist in the recovery process.
The exchange has pledged a reward of up to 10% of the recovered funds, potentially offering as much as $140 million if the full amount is reclaimed.
Zhou said:
“Bybit launched a bounty program on February 22, encouraging ethical hackers and cybersecurity experts to assist in the recovery process. The exchange has pledged a reward of up to 10% of the recovered funds, potentially offering as much as $140 million if the full amount is reclaimed.”
Meanwhile, Bybit has also collaborated with various crypto platforms to freeze and recover stolen assets.
So far, the exchange has successfully frozen approximately $43 million through…
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