CryptoRank platform reported that Binance leads in centralized exchanges in monthly net reserves, while Bybit noted substantial outflows, losing an additional $3.5 billion over the past month.
Binance's Reserve Growth
Binance recorded the largest monthly net reserves, with an increase in inflows by $4.5 billion over the past month. According to CryptoRank's data, the exchange held about $145.13 billion in reserves at the time of publication. DeFiLlama data indicated that Binance saw up to $5.323 billion in net inflows for February. Following Bybit's hack on February 21, Binance experienced $1.5 billion in net inflows in just 24 hours. In January, the exchange attracted around $3.5 billion in net inflows, which at the time surpassed any full month's inflow since November 2022. Binance reported continued significant inflows following a challenging period marked by legal hurdles and leadership changes. Binance paid the U.S. government a landmark $4.3 billion settlement as part of a guilty plea agreement in money laundering and sanctions evasion, in which CEO and founder Changpeng Zhao also agreed to step down.
Bybit's Massive Outflows
Bybit experienced massive outflows following the largest crypto hack in history by North Korean hackers, who stole approximately $1.4 billion worth of Ether from the exchange on February 21. The outflows stemmed from withdrawal pressure from Bybit's customers after the hack drained 70% of the exchange's assets. DeFiLlama recorded that the exchange experienced an outflow of over $6.1 billion in two days after the hack. Bybit's CEO, Ben Zhou, said the firm managed to process all withdrawals 12 hours after the hack. Zhou assured the firm's customers that Bybit was back to 100% 1:1 on client assets through the Merkle tree and confirmed a new audited proof-of-reserves report would soon be published.
THORChain's Role in the Incident
THORChain also reported unprecedented inflows following the Bybit hack. The decentralized protocol reported significant swap volumes of $4.66 billion for the week ending March 2, marking the highest recorded volume. The firm also exceeded the $1 billion mark in transactions on a single day, Sunday. Blockchain analytics firm Nansen linked the surge in THORChain's activity to the hack of Bybit in February, claiming that the hackers used THORChain to swap and launder stolen funds. Lookonchain noted that the Bybit hacker successfully laundered the entire stolen ETH amount, with THORChain as the primary channel for the operations.
Despite a series of events affecting crypto exchanges, such as the Bybit hacker attack and ongoing changes at Binance, the crypto industry shows growth and adaptation. These incidents highlight the importance of security and governance in future financial systems.
