Whale Alert: Bybit's $128M XRP Transfer Raises Liquidity Concerns Post-Hack

On February 24, 2025, a significant transfer of 51,999,999 XRP, valued at approximately $128.78 million, was reported by Whale Alert, a blockchain tracking service. The transfer was from an unidentified wallet to the cryptocurrency exchange Bybit, sparking speculation about potential liquidity support through loans.

This substantial movement of funds follows a similar transaction a few days prior, where 40 million XRP were sent to Bybit from an unknown source. The recent 51.9 million XRP transfer has reignited discussions in the community about potential loan arrangements aimed at bolstering the exchange's liquidity.

Bybit's recent history has been marked by a sophisticated cyberattack on February 21, 2025, which compromised its Ethereum (ETH) cold wallet. The attackers employed a technique known as "musked UI," deceiving authorized signers into approving a malicious transaction that altered the smart contract logic of the wallet. This manipulation granted the attackers control over the funds, resulting in the loss of approximately $1.46 billion worth of ETH.

Despite the severity of the breach, Bybit's CEO, Ben Zhou, reassured users that the exchange remains solvent and that all client assets are fully backed. He emphasized that unaffected wallets and withdrawal processes operate normally. However, the whale transactions suggest that ByBit may need help fulfilling withdrawals.

Whale movements are common in the XRP ecosystem, with various reasons behind these transactions, such as internal fund movements within exchanges, token accumulation by large investors, and sell-offs. However, the timing of these transactions suggests that ByBit may be receiving help from these whales in the form of liquidity support.

In response to the breach, Bybit has implemented several measures to enhance security and recover the stolen assets. The exchange announced a bounty program, offering 10% of any recovered funds—potentially up to $140 million—to cybersecurity experts and blockchain analysts who assist in tracking and retrieving the stolen assets.