Bybit hack caused serious damage but with support from the crypto community, the exchange quickly restored its withdrawal system within 12 hours.
Bybit hack, which is being described as the largest breach in crypto history, was partly overcome thanks to a swift response from industry partners, market makers, and rival exchanges to stabilize the situation.
| Key Takeaways: – Bybit hack caused serious damage but with support from the crypto community, the exchange quickly restored its withdrawal system within 12 hours. – Exchanges like Bitget and MEXC, along with institutional investors, provided substantial ETH loans and transfers to stabilize Bybit’s operations. |
In the wake of the massive security breach, which saw nearly $1.4 billion stolen, Bybit exchange faced intense scrutiny over its handling of the crisis. However, significant support from key industry players has helped mitigate the potential fallout and restore confidence in the platform.
Blockchain data from @EmberCN indicates that MEXC transferred 12,652 stETH, valued at approximately $33.75 million, from its hot wallet to Bybit’s cold wallet.
Additionally, Bitget extended substantial financial aid, providing a total of 64,452 ETH—equivalent to around $170.73 million—as loan support. Of this amount, 40,000 ETH was sent directly from Bitget to Bybit’s cold wallet to facilitate withdrawals following the theft.
Other major transactions included 11,800 ETH (about $31.02 million) from institutional investors withdrawing from Binance, 36,000 ETH (approximately $96.54 million) from another entity associated with Binance, and 20,000 ETH (around $53.7 million) from address 0x327…45b. These contributions have played a crucial role in ensuring Bybit’s operational stability.
Bitget CEO Gracy Chen addressed concerns over the Bybit hack, emphasizing that while the loss was significant, it represented only a year’s worth of the exchange’s profits.
Chen reassured users that customer funds remained secure and urged them not to panic or withdraw assets. She also clarified that the assets loaned to Bybit exchange came from Bitget’s own reserves, ensuring that Bitget users were unaffected.
Bybit CEO Ben Zhou announced that the exchange’s withdrawal system was restored within 12 hours of the incident. The company has openly acknowledged that the breach stemmed from vulnerabilities in Gnosis Safe, a multi-signature wallet service.
Bybit exchange has since detailed its security protocols, stressing that the hack was not due to negligence but rather a highly sophisticated attack. The exchange has committed to publishing a full investigation report once the situation is fully addressed.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
