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Bybit Experiences Massive Withdrawals After Hack
Bybit, a centralized cryptocurrency exchange, is facing significant withdrawals following a hack that saw over $1.4 billion worth of Ethereum and related assets stolen early Friday.
CEO’s Livestream Update
In a livestream following the incident, Bybit co-founder and CEO Ben Zhou stated that the firm has “experienced massive withdrawals in the last two hours.”
Pending Withdrawals
Zhou added that there are thousands of pending withdrawals that the firm is still working through, as it needs to move liquidity around. He assured viewers that the firm would work through pending withdrawal requests within “a few hours,” and that there were no plans to suspend withdrawals.
Trading Volume Spikes
Data from CoinGecko shows that Bybit has seen over $8 billion in spot trading volume over the last 24 hours, a nearly 46% spike over the last day. A chart shows a sizable spike in volume following the disclosure of the attack.
Bridge Loan to Plug Hole
Zhou explained that Bybit is seeking a bridge loan to help plug the hole after the funds were swiped, rather than purchasing Ethereum from the market to help make customers whole.
Loss Coverage
Previously, Zhou wrote on X that Bybit could “cover the loss” even if it cannot recover the stolen funds via the help of law enforcement. During the livestream, Zhou stated that the stolen funds represent approximately 1/20 of the total assets under management by Bybit.
Conclusion
Bybit is facing a significant challenge in the aftermath of the hack, with massive withdrawals and a need to move liquidity around. The company is working to resolve the issue as quickly as possible, and is seeking a bridge loan to help plug the hole. While the situation is complex, Bybit is committed to making customers whole and ensuring the continued stability of the platform.
FAQs
Q: What happened to Bybit?
A: Bybit experienced a hack that saw over $1.4 billion worth of Ethereum and related assets stolen.
Q: How is Bybit handling the situation?
A: Bybit is working to resolve the issue as quickly as possible, with the CEO stating that the firm will work through pending withdrawal requests within “a few hours” and has no plans to suspend withdrawals.
Q: What is a bridge loan?
A: A bridge loan is a type of loan that allows Bybit to access funds quickly, helping to plug the hole created by the hack.
Q: How will Bybit make customers whole?
A: Bybit is seeking to make customers whole through a combination of bridge loan and internal reserves, rather than purchasing Ethereum from the market.
Q: What is the total value of the stolen funds?
A: The stolen funds represent approximately 1/20 of the total assets under management by Bybit.
Q: Can Bybit recover the stolen funds?
A: Bybit is working with law enforcement to recover the stolen funds, but it is unclear whether this will be possible.
