Recently, hackers allegedly stole more than 0.4 million Ethereum (ETH) tokens amounting to a massive $1.5 Billion from one of the cold wallets of Bybit, a popular cryptocurrency exchange.
Despite the massive setback, Bybit did not lose a minute by springing into action, by first assuring users that their funds are safe due to their 1:1 reserve ratio and then by continuing all operations including withdrawals at their exchange, thereby signaling business as usual.
Bybit’s pro-active steps have been lauded by many in the crypto industry as the exchange management has set an example as to how centralized exchanges should operate when faced against such pressure situations.
In the wake of this massive hack, there are other massive ETH transactions happening behind the scenes, with large sums being moved between institutions, OTC desks, and Bybit itself. Here’s a breakdown of what’s going on.
In this exclusive article, we will track down the Eth movements in and out of Bybit, post the $1.5 Billion hack, in order to join the dots and bring out a clearer picture.
Track Bybit Eth Movement Here
Since February 22, a suspected institutional address (0xbA…85ae) has been moving large amounts of ETH. Between 1:03 AM and 12:39 PM UTC+8 on February 23, this address transferred 22,600 ETH into Bybit deposits in five separate transactions. At the same time, it withdrew a staggering 73.599 million USDT, raising questions about whether these movements are linked to liquidity management or damage recovery from the hack.
Another address (0x2E…1b77), believed to be connected to Bybit, has been equally active. It moved $48 million to the OTC desks of Galaxy Digital and FalconX in just 11 hours. The purpose? Buying 34,800 ETH, which was quickly deposited into Bybit. Shortly after, Bybit made another OTC purchase, securing 17,500 ETH from Galaxy Digital.
The transfers don’t stop there. Bybit also received 100 million USDT from 0xEC…B5E76. Within hours, $50 million each was sent to Galaxy Digital and FalconX, which resulted in a purchase of 36,900 ETH. That ETH was deposited into Bybit eight hours ago, signaling a clear effort to restock reserves.
Fenbushi Capital’s involvement adds another layer to the story. A Bybit deposit address, supposedly linked to Fenbushi, pulled out 10,000 ETH from Binance and other sources before moving it all into Bybit’s hot wallet. This hints that outside firms might be stepping in to help Bybit manage its liquidity.
Meanwhile, DWF Labs has also been active. An address linked to them (0xc0…725D) transferred 2,200 ETH to 0x9BF…d19C five hours ago. There’s speculation that these movements could be part of a loan agreement or a strategic fund shuffle.
The hack dealt a heavy blow to Bybit’s Ethereum reserves, which plummeted from 443,691 ETH to just 63,807 ETH at their lowest point. Thanks to aggressive buying and deposits, Bybit has managed to rebuild its reserves, which now stand at 159,702 ETH. According to CryptoQuant, the exchange has been actively restocking, securing 106,498 ETH ($294.93M) in just one day through OTC deals with Galaxy Digital, FalconX, and Wintermute.
Bybit CEO Ben Zhou admitted that the hack wiped out about 30% of the platform’s ETH holdings but assured users that, in the bigger picture, it’s a small fraction, just 0.3% to 0.4% of Ethereum’s total supply. This makes a blockchain rollback unlikely. Still, Bybit is reaching out to Ethereum co-founder Vitalik Buterin to discuss possible solutions.
Right now, Bybit is working hard to rebuild its reserves and restore confidence. The next few days will be crucial in seeing whether these efforts are enough to win back trust or if more challenges are on the horizon.
Also Read: How ByBit Exchange was Hacked & $1.5B Stolen? Understand Here
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