Bybit, led by CEO Ben Zhou, restored liquidity within 30 days after a February 2025 hack in which $1.4 billion in Ethereum was stolen from its cold wallet.
Bybit’s quick recovery post-hack underscores its resilience and leadership. The event also sparked industry-wide discussions on security enhancements and liquidity strategies.
Bybit’s $1.4B Ethereum Loss and Immediate Actions
In February 2025, Bybit, a global cryptocurrency exchange, experienced a massive hack, losing approximately $1.4 billion in Ethereum from its cold wallet. The breach prompted a rapid response from the exchange to address the liquidity crisis.
Ben Zhou, CEO of Bybit, played a pivotal role in managing the situation. The exchange collaborated with its wallet provider Safe, which temporarily paused certain functionalities as a precautionary measure.
It could be that a Safe server was hacked, but we don’t know… Bybit is working with Safe to investigate the incident.” – Ben Zhou, CEO, Bybit
Bybit Leverages Bridge Loans to Mitigate Hack Impact
The hack primarily affected Ethereum (ETH), but Bitcoin and altcoin pairs faced temporary disruptions. Bybit utilized bridge loans to cover a significant portion of the stolen assets, minimizing withdrawal issues for clients.
Analysts highlighted the incident as a reminder of the vulnerabilities in cryptocurrency infrastructure. The swift recovery indicates the resilient liquidity strategies Bybit employed to restore market confidence and protect user interests.
Largest Crypto Hack Sets Recovery Standard
This hack, the largest recorded, echoes past breaches like Ronin Network and Poly Network, each with losses over $600 million. Bybit’s quick actions and bridge financing have set a new standard in post-hack recovery efforts.
Experts emphasize that Bybit’s approach to rapidly securing bridge loans and fortifying liquidity serves as a model for other exchanges. The incident underscores the ongoing need for heightened security in the cryptocurrency sector.
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