Embattled crypto exchange Bybit experienced a sharp decline in its reserves, shedding over $6 billion in just two days.

This mass exodus of funds followed a $1.4 billion exploit on Feb. 21, triggering widespread panic among users.

Data from DeFiLlama reveals that Bybit processed $2.5 billion in withdrawals on Feb. 22 and another $3.26 billion on Feb. 23. The rapid outflows caused the exchange’s total assets to shrink from $16.9 billion to $10.8 billion as of press time.

Stablecoins and Bitcoin were the most withdrawn assets, with users pulling over $2.3 billion in USDT and more than $1.5 billion in BTC.

Despite the rapid outflows, Bybit managed to process withdrawals without major disruptions. Crypto analyst Sani noted that while a significant portion of Bitcoin withdrawals appeared to be routine customer transactions, large sums were transferred to Binance and OTC platforms.

This has raised questions about whether Bybit sold Bitcoin or used it as collateral to secure Ethereum and cover withdrawals.

However, the firm’s CEO, Ben Zhou, reassured users that the exchange had resolved its Ethereum shortfall and that client assets remain fully backed on a 1:1 basis.

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