Whenever Bybit made its 40,000 ETH loan payment to Bitget people did not face problems moving their funds on the platform. Bybit proved their quick reaction to the largest crypto theft ever reported when they returned 40,000 ETH to Bitget just two days after the North Korean hacker group Lazarus Group allegedly conducted the attack.
The hacking incident at Bybit took place on February 21 and created extensive damage. After the hack happened the exchange managed to rebuild its finance and stay in operation without lasting issues. On February 22 Lookonchain demonstrated that Bybit borrowed 40,000 ETH worth $104 million for liquidity purposes and withdrawals from Bitget due to its hacking incident.
Bybit Rebuilds Reserves With Loans
Investors verified that Bybit returned the entire loan and made this transaction without taking any interest or security. Bitget CEO Gracy Chen confirmed this transaction as part of industry-wide collaborative responses to deal with market crises.
“No interest, no collateral—this was simply about supporting a peer in need. Great to see Bybit fully recovered, and we never doubted the return of the loan.”
Bybit built its reserves back by taking ETH loans while accepting large whale deposits and purchasing assets for 1.23 billion USD. The platform secured adequate funds to avoid financial problems because these assets made up 88% of the stolen amount. During moments of indecision customers withdrew $5 billion from their accounts on Feb. 22.
Although the breach happened Hacken reported that Bybit holds adequate assets to repay its debts and keep user funds safe. The stock market showed immediate reactions to this break-in when Ethereum dropped by 7 percent after seven hours of trading at $2,831 to $2,629. At present ETH trades for $2,473 according to current figures.
Through independent research the Lazarus Group was identified as the suspect by crypto investigator ZachXBT who earned 50,000 worth of Arkham tokens as a result. The Bybit cyberattack links found similarities with previous security breaches at BingX and Phemex.
Based on expert research the Lazarus Group typically uses cryptocurrency mixing services to hide their stolen funds after security specialists uncover them. The industry keeps monitoring potential cyber risks and takes advanced security steps to protect all cryptocurrency platforms.
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