- Bybit sees a $4B liquidity influx and processes 350,000+ withdrawal requests after a $1.5B hack.
- Bitget provides crucial support, transferring 40,000 ETH to Bybit.
- Forensic analysis suggests the North Korea-backed Lazarus Group may be behind the hack.
Bybit witnessed a huge $4 billion in inflows within just 12 hours after a hack that saw $1.5 billion in crypto assets stolen. The wave of funds included 63,168 ETH, $3.15 billion in USDT, $173 million in USDC, and $525 million in CUSD.
This major influx into Bybit happened during a historic surge in withdrawal requests. Market participants worried the exchange could be insolvent because of the $1.5 billion theft. In a tweet earlier today, Bybit CEO Ben Zhou said that over 350,000 withdrawal requests had been processed in just 10 hours.
Bybit Assures Liquidity, Gets Partner Support
Zhou reassured users that Bybit has enough liquidity to handle all withdrawal requests, with 99% already processed. Users were asked to remain patient as large withdrawals go through risk checks.
However, Bybit did not buy back Ethereum tokens during the withdrawal surge. Instead, it used other methods to find liquidity and manage the situation.
Bitget: Trusted Partner During Crisis
One of the key partners was Bitget, which stepped up to provide critical liquidity. In a tweet, CEO Gracy Chen assured the market that the 40,000 ETH transferred to Bybit earlier in the day came from Bitget’s own funds, not user assets.
Chen stressed that Bitget’s users’ funds remain secure. The platform keeps a reserve ratio greater than 1:1, with monthly proof of reserves available for transparency.
She also mentioned that while the hack is a major loss for Bybit, it is equal to just one year’s worth of profits for the exchange. She expressed confidence in Bybit’s ability to recover from this incident and stated that Bitget is actively helping track and investigate stolen funds.
Being a developing story, Bybit is still processing withdrawals despite the high traffic. The exchange is working non-stop to ensure that all users can access their funds.
Lazarus Group Suspected in Bybit Hack
Crypto market participants have pointed to the North Korea-backed Lazarus Group as the ones behind the Bybit hack. This comes after forensic analysis by ZachXBT and Arkham Intelligence, which provided evidence to help the investigation.
Related: Radiant Capital Hit by $50M Cyberattack: North Korea Group Linked
In the meantime, BitMEX founder Arthur Hayes proposed an Ethereum rollback to recover the stolen funds, a controversial suggestion that could seriously hamper Ethereum’s decentralization ethos.
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