{"id":25641,"date":"2025-05-07T17:01:33","date_gmt":"2025-05-07T17:01:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=25641"},"modified":"2025-05-07T17:01:33","modified_gmt":"2025-05-07T17:01:33","slug":"bybit-recovers-liquidity-levels-30-days-after-hack-kaiko","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=25641","title":{"rendered":"Bybit recovers liquidity levels 30 days after hack \u2014 Kaiko"},"content":{"rendered":"
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\"Bybit<\/p>\n

The Bybit exchange has recovered its liquidity to pre-hack levels just 30 days following the February 2025 attack that drained nearly $1.5 billion in funds.<\/p>\n

According to a report<\/a> from crypto research and analytics firm Kaiko, Bitcoin’s (BTC<\/a>) 1% market depth, a measure of liquidity, returned to pre-hack levels of around $13 million per day in March 2025.<\/p>\n

\"Cryptocurrency
Bitcoin liquidity on Bybit exchange rebounds to pre-hack levels. Source: <\/em>Kaiko<\/em><\/a><\/figcaption><\/figure>\n

Altcoin liquidity levels on the exchange have been slower to recover than Bitcoin but have rebounded to around 80% of the pre-hack levels. The authors of the Kaiko report added:<\/p>\n

“This lag is largely due to the risk-off market environment, which has impacted altcoins more severely. While Bitcoin is still seen as a risky asset, it remains the crypto market\u2019s safe haven.”<\/p><\/blockquote>\n

Overall, the exchange’s trading volumes remain in recovery; however, the report notes that this drop reflects the broader market trend in response to the ongoing macroeconomic uncertainty<\/a> that has rattled risk asset markets and is not an effect of the biggest hack in crypto history<\/a>.<\/p>\n

\"Cryptocurrency
Altcoin liquidity on the platform has been slower to recover than Bitcoin liquidity. Source: <\/em>Kaiko<\/em><\/a><\/figcaption><\/figure>\n

Related: <\/strong><\/em>Hacken CEO sees \u2018no shift\u2019 in crypto security as April hacks hit $357M<\/strong><\/em><\/a><\/p>\n

Bybit’s incident response<\/h2>\n

The Bybit exchange was hacked<\/a> by cybercriminals on February 21, 2025, resulting in $1.5 billion in stolen funds. A post-mortem update<\/a> revealed a compromised device from a SafeWallet developer, the firm responsible for the multi-signature wallet custody solution used by the exchange, as the cause of the hack.<\/p>\n

Bybit kept withdrawals open<\/a> during the incident, allowing users to access and pull their funds with little delay during the crisis.<\/p>\n

\"Cryptocurrency
A condensed timeline of events of the February 2025 Bybit hack. Source: <\/em>Kaiko<\/em><\/a><\/figcaption><\/figure>\n

Ben Zhou, the CEO of Bybit<\/a>, reassured investors that the exchange was solvent<\/a> and said that the company’s reserves could cover the shortfall whether or not the stolen funds were ever recovered.<\/p>\n

Zhou’s response united the crypto industry<\/a> behind Bybit, with many competitors providing bridge loans to the exchange, technical assistance, and freezing the stolen funds on their protocols.<\/p>\n

Magazine: <\/strong><\/em>Deposit risk: What do crypto exchanges really do with your money?<\/strong><\/em><\/a><\/p>\n