Bybit’s $1.4B Shortfall Sees Support from Crypto Exchanges Amid Hacker Activity

Bitget Transfers 40,000 ETH to Bybit to Aid Recovery After $1.4B Hack

In a show of industry solidarity, crypto exchange Bitget has transferred 40,000 ETH—valued at approximately $105 million—to Bybit, helping the exchange recover from a massive $1.4 billion exploit.

The transfer was made from Bitget’s own reserves, ensuring that user funds remained unaffected and verifiable through its proof of reserves, CEO Gracy Chen confirmed.

“Bitget firmly believes in supporting the crypto community and those contributing to its growth,” Chen stated in a note to CoinDesk, adding that the platform is prepared to offer further assistance if needed.

The attack, allegedly carried out by a North Korean-linked entity, drained Bybit’s reserves on Friday, sparking a surge in withdrawal requests. Despite the pressure, Bybit successfully processed 99% of withdrawals, demonstrating its ability to withstand a major market stress test.

As of Saturday afternoon in Asia, some of the stolen ETH began moving through the eXch mixer, a service that obfuscates transaction trails. Over 5,000 ETH was then bridged via ChainFlip and converted into Bitcoin (BTC).

In response, ChainFlip stated on X that, as a decentralized protocol, it could not block transactions but had disabled some frontend services to slow down the movement of stolen assets.

Meanwhile, Bitget has taken proactive measures by blacklisting wallets associated with the hacker, preventing them from transacting on its platform.

“We are closely monitoring suspicious addresses and will immediately block any illicit transactions,” Chen assured, highlighting the exchange’s ongoing security efforts.

Despite the attack, Bybit has processed over 350,000 withdrawal requests and has since resumed normal operations, according to an update posted on X.