Bybit has fully restored a 1:1 backing of client assets after a significant hack resulted in the loss of $1.4 billion in ETH. The exchange amassed 446,870 ether, worth approximately $1.23 billion, from various sources including over-the-counter trading and loans, recovering from the unprecedented breach. Block analyzer Lookonchain noted that over $400 million was acquired through OTC transactions, while around $300 million came directly from other exchanges. Following the attack, deposit and withdrawal activity returned to normal levels, with total deposits slightly exceeding withdrawals, indicating regained market confidence. The breach targeted Bybit's offline cold wallets using a sophisticated UI manipulation technique, which allowed hackers to redirect funds to an untraceable address. The hack has been linked to North Korea's Lazarus Group, notorious for multiple high-profile crypto thefts. Overall, Ethereum prices reacted positively over the weekend, rising by up to 4%.

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