Bybit, a cryptocurrency exchange, has returned 40,000 Ethereum (ETH) to Bitget following a $1.4 billion hack that occurred recently. The transfer of nearly $100 million worth of ETH back to Bitget comes after Bitget loaned the 40,000 ETH to Bybit immediately after the hack. This move by Bybit is seen as a step towards recovery and rebuilding trust in the cryptocurrency community.
According to data from Arkham Intelligence, Bybit transferred the 40,000 ETH from a cold wallet to Bitget on Feb. 24, amounting to around $99.98 million at the time of transfer. Bitget was one of the first exchanges to come to Bybit’s aid after the exchange lost a significant amount of Ethereum in the hack.
In addition to returning the 40,000 ETH to Bitget, Bybit also moved 47,800 ETH ($118 million) to their cold wallet before the transfer. The exchange was also seen making a transfer of 3,000 ETH to Binance from a hot wallet, worth $7.5 million at the time.
The cryptocurrency market has been experiencing volatility, with Ethereum’s price dropping by nearly 9% in the past 24 hours. The second-largest cryptocurrency by market cap is currently trading at $2,489, falling by 7% in the past week and more than 25% in the past month.
Bybit has been working diligently to recover from the hack, claiming to have fully covered the $1.4 billion loss in Ethereum tokens through whale deposits, ETH purchases, and loans from various exchanges, including Bitget. The exchange received $172.5 million in loans from different exchanges and institutions to manage customer withdrawals in the aftermath of the hack.
Despite the speedy recovery efforts, data from Arkham Intelligence shows that the hacker, believed to be Lazarus Group, has started laundering the stolen funds. Wallets linked to the hacker have been making multiple transactions per minute, moving ETH from one address to another.
Bybit’s CEO has stated that the exchange will soon publish an audited plan-of-record report to demonstrate that Bybit is “100% 1:1 on client assets.” As Bybit continues to return the loans from various exchanges, it is evident that the exchange is making progress in recovering from the hack and ensuring the security of its platform and customer assets.