- Bybit secures 36,000 ETH from Binance to manage rising customer withdrawal demands.
- Binance transfers $96.5 million in ETH to Bybit to stabilize liquidity post-hack.
- Whale loan of 11,800 ETH boosts Bybit’s ability to process withdrawals amid market stress.
Bybit, whose hack garnered attention from the crypto community received significant fund transfer on Saturday. According to on-chain analysis data provider Lookonchain, a significant Ethereum (ETH) transfer worth $96.5 million occurred on the platform. The funds were sent from Binance, which moved 36,000 ETH from its hot wallet to Bybit’s cold wallet. The transfer was completed within 15 minutes, while the exchange continued to deploy this strategy to enhance its market liquidity. Approximately 11,800 ETH worth $31 million was transferred to Bybit as a loan to manage rising customer withdrawal demands.
Bybit experienced increasing withdrawal requests after its Ethereum reserves suffered from a major hack that cost the platform $1.46 billion. After the incident, Binance, Bitget, and other operators started providing financial help to Bybit. Crypto exchange Bitget transferred 40,000 ether worth $105 million to Bybit for financial support. The transferred funds to Bybit serve as operational stabilizers to fulfill customer withdrawal demands expeditiously. Bybit secured the strategic loan to retain investor faith and uphold its capability to deal with large transaction volumes while preserving financial stability.
Rumors emerged about Binance helping Bybit through considerable asset transfers from Binance to Bybit. However, Changpeng Zhao denied these claims in a post on X, stating, “Can’t take credit for it.” Zhao stated that the transactions occurred through user-driven actions, which implies that whales probably made loans to Bybit.
Liquidity Management Amid Market Volatility
After Bybit suffered a major hack, an OTC trading desk connected to Galaxy Digital took out 25,000 ETH valued at $67.12 million. Additional transactions from the same wallet also involved a 200,000 USDC and 90 ETH withdrawal while an unknown wallet pulled off a 700 BTC withdrawal that amounted to around $68.8 million USD. Binance-linked wallets continue to assist Bybit during these events but Binance CEO Changpeng Zhao has stated that these transactions stem from user activity.
On X platform Ben Zhou the CEO of Bybit confirmed the security breach indicating the compromise of their ETH multisig cold wallet. The attackers used the Safe platform to disguise their transaction while displaying the correct address and the URL information to each signer. Following this, the hackers managed to take over control of the ETH multisig cold wallet after modifying the smart contract logic through the transaction.
Zhou guaranteed users that the remaining cold wallets are secure and withdrawal processes work without interruption. Moreover, Zhou requested assistance to seek the stolen funds.
Increased trading activity has been seen on both platforms as a result of the Ethereum loan between Binance and Bybit. The ETH/USD trade volume on Binance increased by 12%, and ETH/USDT on Bybit went up by 7%. Volume spikes indicate high market interest and spikes such as these are often sparked by the interest this loan has garnered among traders and investors.
