Cryptocurrency exchange Bybit made headlines with a bold move, acquiring $87.5 million worth of Ethereum (ETH) through an over-the-counter (OTC) transaction, as reported by crypto analyst Ash Crypto on X. The purchase, facilitated by major trading firms like Galaxy Digital and FalconX, comes just weeks after Bybit suffered a staggering $1.5 billion Ethereum hack the largest crypto heist on record. This transaction signals a potential turning point for the exchange, which is racing to rebuild trust and restore its reserves, while also shaking up global and local crypto markets, including Nigeria’s vibrant trading scene.
A Response to Crisis
The hack, attributed to North Korea’s Lazarus Group by blockchain analytics firm Elliptic, struck Bybit’s cold wallet in early February 2025, draining over 500,000 ETH and sending shockwaves through the crypto world. The stolen funds, now split across 50 wallets and closely monitored by security teams, raised fears of massive sell-offs that could crash Ethereum’s price, already volatile amid broader market uncertainty. Bybit’s CEO, Ben Zhou, quickly assured users that other wallets remained secure and that withdrawals were unaffected, but the damage to the exchange’s reputation was immediate.
In response, Bybit secured an emergency bridge loan covering 80% of the lost ETH from crypto trading firms like Wintermute, and launched a proof-of-reserves audit with Hacken, confirming over 100% collateralization of major assets. The latest OTC purchase valued at 36,893 ETH and executed hours before Ash Crypto’s post—builds on these efforts, showing Bybit’s determination to replenish its reserves and stabilize its position. The transaction, detailed in blockchain data shared on X, involved transfers from hot wallets linked to Galaxy Digital and FalconX, underscoring the scale of institutional backing for Bybit’s recovery.
Market Impact and Ethereum’s Trajectory
Bybit’s buying spree could have far-reaching effects on Ethereum’s market dynamics. With the crypto market still reeling from the hack, traders have been on edge, watching for signs of selling pressure from the hacker’s wallets or institutional moves to shore up prices. Bybit’s OTC purchase, executed outside public exchanges, suggests a strategy to quietly accumulate ETH without triggering immediate price volatility. However, experts caution that the market remains hyper-sensitive—recent rumors of Bybit buying back ETH led to brief price spikes, only for sentiment to sour when Zhou clarified no large-scale spot market purchases were planned.
This move could tighten Ethereum’s supply on exchanges, potentially driving prices upward if institutional demand persists. Ethereum, trading at around $2,370 as of late February 2025, has seen a bearish trend in recent weeks, with price predictions from Changelly suggesting a possible 16.61% drop by late February. But Bybit’s actions, coupled with its near-complete restoration of ETH reserves, might counter that pessimism, attracting bullish investors betting on a recovery. Still, the lingering uncertainty over the hacker’s next move—whether they’ll dump the stolen ETH or hold—keeps traders wary.
Nigeria’s Crypto Scene Feels the Ripple
In Nigeria, where crypto trading has surged amid naira volatility and economic challenges, Bybit’s transaction carries indirect but significant weight. Platforms like Binance reported a boom in local trading volumes in 2024, with over 33% of Nigerians engaging in crypto, according to Lexavier Partners. While Bybit isn’t a dominant player in Nigeria’s market, its actions influence global Ethereum prices, which ripple through local exchanges. Nigerian traders, many of whom rely on Ethereum for DeFi projects or as a hedge against inflation, could see opportunities—or risks—depending on how Bybit’s recovery plays out.
The hack itself raised fresh concerns about crypto security, echoing Nigeria’s own regulatory scrutiny of exchanges like Binance, which faced a lawsuit in 2025 for alleged economic losses tied to its operations. Bybit’s transparent recovery efforts, including the OTC purchase and audits, could reassure Nigerian users, but the broader market’s volatility might push some to pause trading until stability returns.
A Test of Trust and Resilience
For Bybit, this $87.5 million purchase is more than a financial maneuver—it’s a test of its ability to regain trust in a sector where security breaches can be fatal. The exchange’s partnership with firms like Wintermute and its public commitment to audits, as seen in posts from
@Bybit_Official on X, show a concerted effort to reassure users and regulators. Bybit’s claim of nearing 100% ETH reserve restoration, combined with today’s transaction, positions it as a survivor in the crypto wilderness, but the road ahead remains rocky.
Analysts note that large blockchain movements like this often spark market reactions. A 2022 ScienceDirect study highlighted how high-value Bitcoin transfers can sway prices, and Ethereum’s ecosystem already strained by the hack could see similar shifts. If Bybit continues its buying spree and the hacker avoids dumping funds, Ethereum might see a bullish rebound. But if selling pressure mounts, the price could tumble further, dragging down Nigeria’s crypto traders and global investors alike.
This purchase marks a critical moment in the exchange’s recovery and the broader crypto market’s trajectory. As Bybit doubles down on restoring its reserves and rebuilding trust, the crypto community, watches closely, hoping for stability but braced for more twists in this high-stakes game.
