Bybit, a leading crypto exchange, has successfully restored its Ethereum (ETH) reserves after being hit by one of the largest hacks in crypto history. Bybit CEO Ben Zhou announced this significant milestone on February 24, just days after the exchange fell victim to a $1.5 billion hack allegedly carried out by North Korea's Lazarus Group.

The hack targeted Bybit's multisig cold wallet system, allowing hackers to steal 401,346 ETH valued at approximately $1.13 billion from the exchange's hot wallet. This caused Bybit's total reserves to plummet by $5.2 billion within 24 hours, raising concerns about the platform's stability. Despite this setback, the exchange swiftly secured emergency funding to reinforce its reserves. Following the hack, on-chain data indicated that normal deposit and withdrawal levels on Bybit were restored.

Zhou confirmed that Bybit has now fully restored its ETH reserves to a 1:1 backing of client assets. He also mentioned that an audited Proof-of-Reserves (POR) report, utilizing a transparent Merkle tree structure, will be released soon to demonstrate Bybit's 100% reserve backing for client assets.

Bybit received around 446,870 ETH ($1.23 billion) through a combination of loans, whale deposits, and direct ETH purchases. Notably, contributions from key players like Bitget, MEXC, DWF Labs, and others helped in Bybit's recovery process.

Despite the initial dip in Ethereum's market price following the hack, Bybit's quick recovery efforts and transparency have been praised by industry observers. Bybit has also launched a bounty program, offering rewards of up to 10% of any recovered assets, with the potential for participants to earn significant amounts.

While Ethereum's market price has faced challenges in rebounding, Bybit's resilient response and commitment to strengthening security measures serve as a testament to the exchange's determination to overcome adversity in the crypto space.