The fluidity of the bibit exchange returns to the pre-hack level: Report

Keynote

Bitcoin liquidity rebounded against pre-hack levels within a month. The Lazarus Group has been identified as the attacker behind the $1.5 billion ETH exploit.

Bitcoin liquidity on Crypto Exchange Bybit has returned to the level that was last seen before the February breach that rocked the platform. A new report from market research firm Kaiko revealed that the exchange, particularly for trading Bitcoin, has regained solid footing a few weeks after hacking.

Liquidity rebounds after a $1.5 billion hack

On February 21, 2025, BYBIT suffered a major security breaches in which over 400,000 ETH, worth around $1.5 billion, was stolen. The attacker used a multi-signature exploit to trick the cold wallet signatories to approve the malicious transaction.

The US Federal Bureau of Investigation (FBI) has confirmed that the Lazaro Group, a North Korean-supported hacking organization, was behind the theft.

According to a report by Kaiko, users’ confidence fell sharply after the incident. The platform has experienced more than 350,000 withdrawal requests. Trading slowed and market activity was fully immersed. This loss caused a significant decline in market depth, especially for Bitcoin and altcoin in Buybit order books.

Despite these challenges, Kaiko’s report focused on regaining Bitcoin’s liquidity. Market depth refers to the ability to handle large transactions without major price changes, dropping to 0.1% shortly after hacking. However, it improved significantly in March, returning to about 8%. This allowed Bybit’s Bitcoin trading environment to its pre-infringement state.

The Digital Exchange giant has recovered 7% of its market share, following a $1.4 billion hack linked to the Lazarus Group. The exchange also regained investor trust by introducing new security measures and strengthening liquidity through a partnership with Zodia Custody.

It is noteworthy that this recovery occurred amidst wider market pressure. Changes in US trade policies in March and April caused global trade disputes, putting an extra strain on the crypto market.

However, Bybit’s market depth bounces back in 30 days of attack, indicating resilience that is not consistent with all of its competitors.

Institutional orders and Altcoin Recovery play a role

It is worth mentioning that Kaiko’s report also points out the role of orders in retail price improvement (RPI) in restoring stability. These orders were introduced on February 20th, one day before the hack, allowing institutional traders to offer better pricing to retail customers. The timing of this launch helped to alleviate volatility during turbulence and may have contributed to a fluidity comeback.

Bitcoin had seen the strongest rebounds, but the report said that Altcoin’s liquidity is also recovering, but is recovering more slowly. The top 30 market capitalization Altcoins have recovered by Bibit over 80% of previous market depth. Silkworms linked a slower pace of warnings in the market caused by broader economic concerns.

In comparison, other exchanges such as HTX, Bithumb and MEXC recorded double-digit liquidity declines in March. With the market depth of Buybit increased by 30%, it has become ahead of its peers despite the previous set-up. This rebound highlights how the platform was able to regain stability and trader trust in a short time.

Meanwhile, Bybit CEO Ben Zhou revealed that 68.5% of the stolen funds are still traceable, reaching around $960 million. He added that over 84% of the funds that have been hacked, about $1.2 billion in ETH, has been exchanged for BTC.

Next

Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information, but should not be considered financial or investment advice. Market conditions can change quickly, so we recommend that you review your information yourself and consult with an expert before making a decision based on this content.

Cryptocurrency news, news