Bybit recovers liquidity levels 30 days after hack — Kaiko

By: the crypto news wire|2025/05/08 01:45:02

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. According to a report from crypto research and analytics firm Kaiko, Bitcoin’s ( BTC ) 1% market depth, a measure of liquidity, returned to pre-hack levels of around $13 million per day in March 2025. Bitcoin liquidity on Bybit exchange rebounds to pre-hack levels. Source: Kaiko 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: “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’s safe haven.” 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 that has rattled risk asset markets and is not an effect of the biggest hack in crypto history . Altcoin liquidity on the platform has been slower to recover than Bitcoin liquidity. Source: Kaiko Related: Hacken CEO sees ‘no shift’ in crypto security as April hacks hit $357M Bybit’s incident response The Bybit exchange was hacked by cybercriminals on February 21, 2025, resulting in $1.5 billion in stolen funds. A post-mortem update 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. Bybit kept withdrawals open during the incident, allowing users to access and pull their funds with little delay during the crisis. A condensed timeline of events of the February 2025 Bybit hack. Source: Kaiko Ben Zhou, the CEO of Bybit , reassured investors that the exchange was solvent and said that the company’s reserves could cover the shortfall whether or not the stolen funds were ever recovered. Zhou’s response united the crypto industry behind Bybit, with many competitors providing bridge loans to the exchange, technical assistance, and freezing the stolen funds on their protocols. Magazine: Deposit risk: What do crypto exchanges really do with your money?

A Polymarket user supported nearly half of Trade.xyz's "active addresses" with 34,000 wallets, yet contributed less than 1% of the trading volume. The real support for the market comes from market-making institutions like Jump, Selini, and Wintermute, as well as a group of directional traders crossi...

Binance quietly placed a bet on a leading large model company

In the past year, YZi Labs has significantly accelerated its investments in the AI field, from educational agents to physical robots, and then to large models, with crypto capital and AI technology rapidly integrating.

Best Crypto Discord Server 2026: Why Jacob’s Crypto Clan Is Gaining Massive Attention

Jacob’s Crypto Clan has grown into one of the most active crypto Discord communities, with over 45K members and continuing to expand. This rapid growth reflects strong demand for structured trading insights and real-time collaboration.

Tom Lee Buying ETH: Why Wall Street’s Loudest Ethereum Bull Keeps Doubling Down

Tom Lee keeps buying ETH through every dip, every drawdown, and every moment of market doubt. Inside the strategy that's turning Ethereum into a treasury asset — and what it signals for the rest of the market.

Stripe Sessions 2026: AI Agent, Global Payments, and Invisible Crypto Infrastructure

Stablecoins have finally begun to enter the real business world, but this time, the main character may not be exchanges, wallets, or public chains, but Stripe. It encapsulates KYC, wallets, gas, compliance, and settlement, allowing businesses to access on-chain assets just like using regular payment...