Binance Founder Changpeng Zhao (CZ) Responds to Allegations that Binance Sent Large Funds to Help Bybit

Binance founder Changpeng Zhao (CZ) has denied claims that the exchange provided Ethereum (ETH) loans to Bybit, claiming that the transactions in question were due to user activities rather than direct intervention by Binance.

Addressing rumors circulating within the cryptocurrency community, Zhao explained that some whale investors may be providing liquidity to Bybit, but Binance itself is not involved in such transactions. “These are user transactions and Binance cannot take credit for them,” he said.

Zhao had previously responded to a post highlighting Binances liquidity moves to Bybit with the phrase “Protect users, protect the industry.” The comment led to speculation that Binance was actively funding the rival exchange.

According to data from Deflama, the recent Bybit security breach has led to significant capital shifts across major cryptocurrency exchanges. Binance recorded the highest 24-hour net inflows of $749.3 million. OKX and Gate.io followed with net inflows of $36.98 million and $50.57 million, respectively.

Meanwhile, Bybit saw a significant 24-hour net outflow of $2.39 billion. Other exchanges also saw significant outflows, with Bitget losing $98.24 million and Robinhood seeing $39.73 million leave its platform.

*This is not investment advice.