Crypto Exchange Bybit Fully Closes Ethereum Gap, According to Updated Proof of Reserves Report

Bybit’s chief executive says the firm has now fully closed the Ethereum gap after hackers stole nearly $1.5 billion worth of ETH and Lido Staked Ether (stETH) from the crypto exchange last week.

Bybit CEO Ben Zhou says the exchange has restored a 1:1 backing on all client assets after the record-setting hack.

Zhou’s claims are echoed in a proof-of-reserves audit report published by the blockchain security auditor Hacken on Sunday.

“The Hacken team’s Proof of Reserves audit, conducted on Sunday, February 23, 2025, demonstrates that Bybit maintains an in-scope reserve ratio of > 100 %. This finding signifies that Bybit possesses sufficient reserves to cover its in-scope liabilities, thereby bolstering trust and confidence among its users and stakeholders.”

The Bybit CEO said hackers manipulated an ETH transfer between one of the exchange’s cold wallets and warm wallets. Pseudonymous on-chain investigator ZachXBT linked the exploit to the Lazarus Group, an infamous North Korean cybercriminal outfit.

The Dubai-based exchange announced a full restoration of services on Sunday despite a record-setting level of withdrawal requests following the hack.

“Bybit has successfully processed the highest number of withdrawal requests in our history. Within the first 10 hours of the incident, we processed over 350,000 withdrawal requests, completing 99.9% of them by 1:45 AM UTC. As of now, all withdrawals across all tokens are fully operational, with our systems running smoothly and processing without delays. In total, over 580,000 withdrawal requests have been successfully completed.”

Bybit also launched a recovery bounty program to recover the stolen funds, offering 10% of the retrieved amount.

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