Bybit Hack Freezes $1.34B in ETH, Pushing Ether Price Higher

Ether is up 2% as the market views the hacked ETH as effectively removed from circulation, tightening supply and creating bullish sentiment.

The hacker responsible for the Bybit exploit—believed to be linked to a North Korean entity—has become one of the largest ether holders globally, a development that could have long-term implications for the crypto market.

Blockchain analytics from Arkham Intelligence and Coinbase’s Connor Grogan reveal that the attacker currently holds 489,000 ETH, worth approximately $1.34 billion. This massive stash accounts for 0.4% of the total ether supply, making the hacker the 14th-largest ETH holder, surpassing entities like the Ethereum Foundation, Vitalik Buterin, and even financial giant Fidelity.

However, due to exchange blacklists and strict monitoring, these stolen assets are essentially frozen, as no major trading platform is likely to process their liquidation. This means a significant portion of ether supply is now locked away indefinitely.

Meanwhile, Bybit, which suffered the exploit, has reportedly secured a bridge loan covering about 80% of the stolen ETH but may still need to purchase large amounts of ether to fully recover.

“As far as this supply is concerned, it’s essentially gone. No OTC desk or exchange will facilitate the movement of such a large amount. Meanwhile, Bybit is short 402k ETH. The bridge loan may cover immediate needs, but purchasing will still be necessary,” said Vance Spencer, co-founder of Framework Ventures, in an X post.

This perceived reduction in available supply may be fueling ether’s price rebound, with ETH rising 2.6% to $2,730 from an overnight low of $2,614. Additionally, Coingecko data shows that perpetual futures funding rates remain positive, indicating traders maintain a bullish outlook.