Discover the impact of ByBit's emergency loan and Ethereum price fluctuations. Learn how the recent security breach affected the market and ByBit's actions to recover the loss.
After the theft of 401,346.76 Ethereum (ETH) worth $1.5 billion from ByBit exchange wallets on Friday, the cryptocurrency market faced a major shock. The security breach caused Ethereum’s price to drop by about 8% on February 21, from $2845 to $2614. However, once the exchange confirmed the security of customers’ assets, the short-term market fear subsided. Research indicates that the Lazarus group from North Korea was behind this attack. To compensate for the $1.5 billion loss, ByBit received short-term loans from various crypto exchanges and institutions. In such a scenario, if the price of Ethereum increases, the repayment cost for ByBit will rise, increasing the risk of bankruptcy.
