Bybit Hack: Has the Exchange Recovered Its Stolen Funds?

Is Bybit Closing the Gap After the Recent Security Breach?

Bybit faced a major hack after a hacker exploited the exchange, but the platform has been actively working towards financial recovery. While the hacker's actions caused major disruption, Bybit has been working towards financial recovery. Ben Zhou provided an important update, stating:

"Bybit has already fully closed the ETH gap. A new audited POR report will be published very soon to show that Bybit is again back to 100% 1:1 on client assets through Merkle tree. Stay tuned."

According to Lookonchain, since the hack, Bybit has received approximately 446,870 ETH ($1.23 billion) through loans, whale deposits, and ETH purchases, nearly closing the gap. This suggests that Bybit is on track to restoring its financial position.

Meanwhile, Bitget CEO Gracy Chen also addressed concerns about Bybit’s $1.5 billion loss, adding another layer to the ongoing discussions about exchange security.

How the Hacker Used Solana for Laundering

The crypto world was shaken after Bybit, a major cryptocurrency exchange, suffered an exploit. A hacker managed to steal funds and then attempted to launder the money using Solana-based meme tokens on Pump.fun. The incident raised serious concerns about security and the growing trend of using meme tokens for illicit activities.

Blockchain data revealed that the Bybit exploiter, identified as "5STkQy...95T7Cq," transferred 60 SOL (Solana tokens) to another address, "9Gu8v6...aAdqWS." This second address then launched a token called QinShihuang (500,000), which surprisingly gained massive trading volume, exceeding $26 million.

This exploit showcased how hackers take advantage of decentralized platforms, issuing tokens and artificially pumping prices before cashing out profits.

Pump.fun and Bybit Take Action

Recognizing the threat, Pump.fun, a popular platform for launching Solana tokens, took swift action. With the help of Cal Lily Liu and her team, Pump.fun blocked and removed the token associated with the hacker, ensuring it could no longer be used for laundering. This was a significant move in securing the Solana ecosystem from criminal activities.

Bybit, on the other hand, worked with security partners and blockchain experts to track the stolen funds and take proactive measures. The exchange’s CEO Ben Zhou, along with key executives Helen and Emily, have been actively working with industry partners to strengthen security and prevent similar incidents.

Community Reactions and Future Security Measures

The crypto community widely appreciated Pump.fun and Bybit’s quick response, highlighting the importance of collaboration in tackling hacks and fraud. Many industry leaders praised the efforts, emphasizing how proactive security measures can help prevent bad actors from exploiting the system.

This event has once again sparked discussions about security improvements in centralized and decentralized exchanges. Experts suggest that better tracking tools, tighter security audits, and quicker response mechanisms are necessary to combat increasing crypto-related exploits. Meanwhile, Bitget CEO Gracy Chen addressed concerns regarding Bybit’s $1.5 billion loss, stating that exchanges need to prioritize robust security frameworks to prevent such incidents in the future

The Bybit hack serves as a reminder that crypto security is an ongoing battle. However, the quick response from Bybit, Pump.fun, and blockchain experts shows that the industry is evolving to fight back against bad actors more effectively.