Cryptocurrency exchange Bybit has apparently responded forcefully to its recent hack, purchasing $742 million worth of Ether (ETH) in just two days. This massive acquisition, which came shortly after the $1.4 billion theft attributed to the Lazarus Group, raises questions about Bybit’s strategy to regain user trust and stabilize the price of ETH. This article analyzes the details of these purchases, the context of the hack, and the implications for Bybit and the Ether market.
Bybit: A Two-Step Ether Acquisition
According to blockchain analytics firm Lookonchain, Bybit made these massive Ether purchases via two separate wallet addresses. The address “0x2E45…1b77” allegedly acquired 157,660 ETH (worth $437.8 million) from crypto investment firms Galaxy Digital, FalconX, and Wintermute, via over-the-counter transactions. These purchases were made on February 22.
Another acquisition, estimated at $304 million worth of Ether, was allegedly made by the address “0xd7CF…A995” via centralized and decentralized exchanges. Lookonchain, citing data from Arkham Intelligence, believes that it is “likely” that this address is also linked to Bybit. Arkham indicates that this address interacted with the hot wallets of Binance and MEXC. Multiple transfers were made to these addresses to build up the respective amounts.
Reaction to record $1.4 billion hack
The purchases come amid a crisis for Bybit following a massive hack on February 21 that reportedly netted North Korean state-backed Lazarus Group $1.4 billion. The hack is the largest in cryptocurrency history, accounting for over 60% of all funds stolen in 2024. Lookonchain estimates that Bybit has now received 446,870 ETH, worth around $1.23 billion, from loans, whale deposits, and purchases, accounting for nearly 88% of the $1.4 billion stolen.
Alongside these ETH buybacks, Bybit has also faced massive withdrawals from its customers, with over $5.3 billion withdrawn on February 22. Despite the massive withdrawals, proof-of-reserves auditor Hacke assures that the platform’s reserves still exceed its commitments and that users’ funds remain fully collateralized. The price of Ether had fallen by more than 7% in 7 hours, from $2,831 to $2,629 after the hack, but has since recovered to $2,765, according to data from CoinGecko.
