Ethena Labs Cuts Bybit Exposure to $30M, Bolsters Custody

Crypto lending platform Ethena Labs has taken steps to mitigate its exposure to the recent collapse of crypto exchange Bybit, confirming off-exchange custody with Copper Clearloop and reducing its risk to less than $30 million. The company initially had a $1.2 billion USD exposure to Bybit, which has since been significantly reduced.

In a statement, Ethena Labs acknowledged the challenges posed by the Bybit incident and emphasized its commitment to protecting client assets. The company has implemented measures to diversify its risk and strengthen its custody arrangements, ensuring that client funds are secure.

The Bybit collapse has had a significant impact on the crypto industry, with several other platforms also affected. However, Ethena Labs' proactive response demonstrates its dedication to maintaining the trust of its clients and navigating the volatile crypto market.

As the crypto industry continues to evolve, it is crucial for platforms to implement robust risk management strategies and maintain transparency with their clients. Ethena Labs' actions serve as an example of how companies can adapt to the challenges posed by the crypto market and prioritize the security of client assets.