Bybit restores $1.5 billion liquidity one month after historic hack

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has returned its liquidity to pre-hack levels just 30 days after suffering a $1.5 billion security breach on February 21, 2025.

According to analytics firm Kaiko, Bitcoin (CRYPTO:BTC) market depth on Bybit rebounded to around $13 million per day in March, signaling a swift recovery in core liquidity metrics following the major incident.

“Altcoin liquidity levels on the exchange have been slower to recover than Bitcoin but have rebounded to around 80% of the pre-hack levels,” Kaiko reported, attributing the lag to a “risk-off market environment” that has impacted altcoins more severely.

The hack, which remains the largest in crypto history, was traced to vulnerabilities in Bybit’s cold wallet infrastructure.

Attackers exploited a compromised device belonging to a SafeWallet developer, injecting malicious code that allowed them to siphon off approximately 401,000 ETH and other assets by manipulating transaction approvals and smart contract logic.

Bybit kept withdrawals open during the crisis, allowing users to access their funds without significant delay.

“The company’s reserves could cover the shortfall whether or not the stolen funds were ever recovered,” CEO Ben Zhou assured customers, emphasising that the exchange was solvent and reserves would cover any losses.

The crypto industry responded with support, as competitors provided bridge loans, technical assistance, and froze stolen assets where possible.

Despite the recovery in liquidity, trading volumes on Bybit remain in line with broader market trends, reflecting ongoing macroeconomic uncertainty rather than the direct impact of the hack.

Investigations linked the attack to North Korea’s Lazarus Group, highlighting the evolving tactics of state-sponsored cybercrime in the digital asset sector.