Bybit Repays $40M ETH Loan, Boosts Confidence After $1.4B Hack

Bybit, a leading cryptocurrency exchange, has swiftly repaid a 40,000 ETH loan to Bitget, demonstrating its commitment to financial stability and customer trust amidst a $1.4 billion hack attributed to the notorious Lazarus Group. This move comes as a pivotal step in Bybit's efforts to recover from the incident and resume normal operations.

The repayment, which occurred on February 25, was confirmed by on-chain data and verified by Bitget's CEO, Gracy Chen. Chen noted that the loan was repaid without interest or collateral, highlighting the collaborative spirit within the crypto industry during crises. This timely repayment has significantly contributed to restoring confidence among investors and customers.

Following the hack, which was one of the most substantial breaches in cryptocurrency history, Bybit took commendable actions to restore its liquidity. The exchange managed to replenish approximately 446,870 ETH, valued around $1.23 billion, through various channels such as loans, whale deposits, and asset purchases. This figure represents nearly 88% of the funds that were compromised during the hack.

The decision to secure a loan from Bitget was primarily aimed at facilitating customer withdrawals, which surged amid rising anxiety over the security of their assets. Following the breach, Bybit experienced more than $5 billion in withdrawals on February 22 alone. This swift reaction from customers indicates a lack of confidence, which Bybit aimed to mitigate by ensuring that withdrawals could be processed without delays.

In a reassuring note, Proof-of-reserve auditor Hacken confirmed that Bybit's reserves continue to exceed its liabilities, emphasizing that user funds are fully backed. This statement serves as a crucial reassurance for stakeholders that the platform remains financially sound despite the recent challenges.

The implications of this hack extend beyond Bybit and affect the broader cryptocurrency ecosystem, especially Ethereum (ETH). Following the incident, the price of ETH plummeted over 7% within hours, falling from $2,831 to $2,629. As of the latest data, ETH is trading at approximately $2,473, reflecting market unease.

The swift recovery actions taken by Bybit may contribute to stabilizing market sentiment, particularly as other exchanges monitor the situation closely. As Bybit's reputation recovers, many anticipate how