Bybit, which refused to list Pi Network, recovers reserves after record $1.5B crypto hack

By Phong Ngo February 24, 2025 | 10:03 pm PT

Bybit, the Dubai-based crypto exchange that refused to list Pi Network, has recovered its reserves after a record $1.5 billion hack last week, the largest in crypto history.

Within 72 hours, Bybit secured nearly 447,000 ether tokens through emergency funding from firms including Galaxy Digital, FalconX, and Wintermute, CNBC reported. A proof-of-reserves audit by cybersecurity firm Hacken verified the exchange’s reserves, confirming all major assets exceeded a 100% collateralization ratio.

The exchange remained solvent, though the stolen assets remain unaccounted for.

Bybit CEO Ben Zhou confirmed on social media platform X that client assets were fully backed with customer withdrawals unaffected.

Bybit CEO Ben Zhou. Photo from X

According to Bybit, on Feb. 21, attackers exploited security protocols during a transaction, transferring assets to an unidentified address. The breach compromised an offline wallet storing Ethereum, resulting in the theft of 400,000 ETH, AFP reported. Ethereum is the second-largest cryptocurrency by market value after Bitcoin, and was worth $2,641.41 on Feb. 21 after the hack, down nearly 4%.

Days earlier, Zhou had drawn attention for refusing to list the Pi Network cryptocurrency, calling it a scam in a Feb. 12 post on X. Hours before the hack, he issued another warning about fraudulent projects.