Binance's Net Inflows Surge Amid Bybit Hack Fallout

Binance Net Inflow Surges After Bybit Hack

Binance, the world's largest cryptocurrency exchange, has witnessed a significant increase in net inflows following the recent hack of its rival, Bybit. According to trading data, Binance saw over $3.9 billion in inflows in the week after the Bybit hack, while the latter exchange experienced substantial outflows.

Before the hack, Binance was already the world's largest crypto exchange in terms of 24-hour trading volume, with Bybit close behind in second place. However, since the hack, Bybit has fallen to eleventh place in the rankings.

Bybit sustained a serious loss in the hack, with the North Korean Lazarus Group perpetrating the attack and laundering all $1.5 billion in stolen funds. In contrast, Binance emerged as an unexpected winner, with users shifting their assets to the platform in droves.

Binance's inflows peaked at just under $9.3 billion last November, and the exchange has been extending its lead as the largest centralized exchange. Despite facing regulatory scrutiny and legal challenges in the past two years, Binance has made progress towards proactive compliance.

Most recently, Binance delisted Tether's USDT and non-MICA-compliant stablecoins in Europe, and its American wing, Binance.US, restarted USD deposits nearly two years after the DOJ charges. The Bybit hack shocked the industry, but user interest in Binance continues to grow, with no close competition in sight.