Bybit buys $1.25B in ETH tokens following biggest-ever crypto hack
What's the story
Leading cryptocurrency exchange Bybit has acquired Ethereum (ETH) tokens worth some $1.25 billion. The move comes as part of the company's recovery efforts after a devastating hack that saw it lose $1.4 billion, the largest crypto theft in history. The acquisition was made through various channels including loans, large-scale deposits (whale deposits), and purchases according to blockchain analytics firm Lookonchain.
Transaction details
Bybit secures substantial ETH through OTC deals
The recovery process included locking a huge amount of ETH through Over-The-Counter (OTC) deals. Bybit bought 157,660 ETH worth $437.8 million from Galaxy Digital, FalconX, and Wintermute through these deals, Lookonchain reported. Meanwhile, a wallet linked to Bybit spent $304 million to purchase Ethereum from centralized and decentralized trading platforms, according to Arkham Intelligence's analysis.
Financial stability
Bybit's reserves surpass liabilities post-hack
In the wake of the hack, Bybit has managed to stay afloat. Proof-of-reserve auditor Hacken confirmed that Bybit's reserves now exceed its liabilities, even after customers withdrew a staggering $5.3 billion on February 22. The development ensures full protection for user funds despite the massive withdrawal activity in the wake of the security breach.
Market impact
ETH price recovers after initial post-hack dip
The hack affected the ETH market heavily, with the price plummeting by 7% within seven hours of the incident. The value fell from the original figure of $2,831 to $2,629. However, as per CoinGecko data, it has since recovered and is currently trading at $2,765. The recovery shows some degree of market resilience after the security breach at Bybit.