Bybit, one of the leading cryptocurrency exchanges, has officially transferred nearly $100 million worth of ETH back to Bitget. Following the recent $1.4 billion hack, Bitget has supported Bybit by lending 40,000 ETH to help the exchange weather the crisis.
According to Arkham Intelligence, on February 24, Bitget received 40,000 ETH from Bybit's cold wallet, worth approximately $99.98 million at the time of transfer. This is considered one of Bitget's quick and necessary support actions for Bybit after the exchange suffered heavy losses in one of the largest cryptocurrency hacks to date.
Details of Transactions
Blockchain data shows that before transferring ETH to Bitget, Bybit first transferred a portion of Ethereum from its hot wallet to its cold wallet. Notably, Bybit also previously made a transfer of 47,800 ETH (equivalent to $118 million) to its cold wallet before making the transaction with Bitget.
Amid this financial turmoil, Bybit was also reported to have transferred an additional 3,000 ETH to Binance from its hot wallet, equivalent to approximately $7.5 million. This rapid change comes amid a sharp decline in the ETH market, with ETH prices down nearly 9% over the past 24 hours, currently trading at $2,489. ETH prices have been on a downward spiral in recent days, down 7% over the past week and over 25% over the past month.
Bybit's Road to Recovery
Bybit recently announced that it has fully recovered the $1.4 billion loss the exchange suffered from a major hack. To overcome the dire situation, Bybit has implemented a series of measures to strengthen its finances, including attracting large investments from individual investors (whales) and making ETH purchases.
Immediately after the unfortunate incident, on February 22, Bybit successfully attracted a loan of $172.5 million in ETH from various exchanges and companies to meet customers' withdrawal demands. These loans included 40,000 ETH borrowed from Bitget, 12,652 ETH Lido staking (STETH) from MEXC, and 11,800 ETH from Binance. The support from these major partners helped Bybit to promptly stabilize its financial situation and ensure customer rights.
Just four days after the incident, Bybit has proven to be resilient. On February 24, Bybit’s CEO announced that the exchange is in the process of preparing an audit report to confirm that it guarantees 100% 1:1 collusion for customer assets, demonstrating Bybit’s commitment to transparency and accountability.
The focus on ETH not only helps Bybit regain trust from the community but also proves that the platform is capable of effectively responding to major challenges. ETH is becoming an important part of Bybit's recovery strategy, ensuring that transactions are smooth and easy for users.
In the face of the difficulties they have experienced, they have shown a strong determination to reaffirm their position in the market. By carefully rebuilding their financial resources through a smart borrowing strategy and ETH trading, Bybit has not only maintained operations but also built trust among customers.
From these efforts, Bybit sets a grand goal of demonstrating further stability and transparency in its business operations, thereby affirming that it is ready to take on any challenges that the crypto financial market may present in the future.
Hacker Threats
While Bybit has taken positive steps toward recovery, data from Arkham Intelligence indicates that the hacker group, believed to be the Lazarus Group, has begun laundering the stolen funds. Wallets associated with the hackers have been making two to three transactions per minute, moving ETH between different addresses to hide their tracks.
In this context, Bybit receiving support from Bitget not only helps them overcome the current difficulties but also creates an opportunity for them to rebuild trust from customers and ensure the safety of their assets in the future.
Conclude
From this situation, it can be seen that the cryptocurrency sector is facing many challenges, especially from security incidents. Exchanges such as Bybit and Bitget are trying to not only restore their operations but also protect the interests of their customers. The fight against cybercrime in the cryptocurrency space is still ongoing and requires strong attention and structural solutions from stakeholders.
Bybit’s return to normal operations is not only a victory for the company itself, but also a positive sign for the entire crypto industry. While ETH prices may be volatile, these actions demonstrate a strong determination to recover and grow in the current challenging environment.