This week, rumors online claimed that a crypto exchange was experiencing insolvency issues, worrying the community. Amid the uncertainty, users identified Bybit as the exchange with alleged problems.
On Wednesday, Bybit’s CEO Ben Zhou refuted the rumors of a hack or lack of solvency on X, reassuring investors the exchange was operating as normal.
Bybit’s CEO Dispels The Rumors
On Tuesday, reports circulated of a crypto exchange insolvency on private chats. The rumors sparked fear of another FTX-like debacle looming. The reports originally surged as Arkham Intelligence’s Proof-of-Reserves (PoR) graph suddenly dropped from the $11 billion range to the $6 billion mark.
An X user quickly pointed out that the news was false as Arkham’s graph was broken. The user detailed that a specific wallet was causing a bug that didn’t show over $4 billion in funds in the chart. However, if checked individually, all assets appeared on the wallets.
The community took the incident with humor, as many lightened the mood with memes and references to the FTX collapse while waiting for clarification. An X user shared a “copypasta” post from 2022, poking fun at the way rumors spread among the community. Part of the post reads:
The prop desks in crypto are worse than teenage girls when it comes to gossip and I don’t want to be collateral damage in a self-fulfilling prophecy.
Other users urged the community to properly research news “before spreading FUD,” suggesting other platforms to verify Bybit’s POR and related information.
On May 23, Bybit’s CEO Ben Zhou acknowledged the concerns and clarified that the crypto exchange had not been hacked, as some seemingly suggested, nor was it insolvent. Zhou shared the exchange’s POR snapshot from May 8 and linked Nansen’s dashboard.
The dashboard displayed the exchange’s $11 billion assets. One of the charts reveals that the crypto exchange’s assets worth has remained above $10 billion this week, confirming that Bybit’s reserves did not drop.
At the time of writing, Arkham’s graph seems to be fixed. The platform’s POR graph for Bybit coincides with Nansen’s $11 billion graph.
Crypto Regulators Crackdown On Bybit
The recent FUD (Fear, uncertainty, and doubt) comes amid the crypto exchange’s regulatory scrutiny. Last week, French authorities called out Bybit for operating without a license in France.
The Autorité des Marchés Financiers (AMF) issued a reminder that the exchange was blacklisted in the country since 2022. Moreover, the AMF stated its right to block the crypto platform’s website and advised users to safeguard their assets before they were inaccessible.
Similarly, the Hong Kong Securities and Futures Commission (SFC) named Bybit a “suspicious” platform in March. As Bitcoinist reported, the SFC’s warning was part of the regulator’s efforts to crack down on unregistered platforms in Hong Kong.
The financial regulator listed 11 products offered by the crypto exchange as “suspicious” and clarified that Bybit was an unlicensed platform. The SFC warned users about the “risks” of investing in an unregulated platform.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
FAQs
Bybit has been at odds with the Autorité des Marchés Financiers (AMF) since 2022 when the regulator blacklisted the exchange.
Has Bybit ever been hacked? ›
Bybit, in contrast to many well-known brands, has never been compromised, and many clients respect it for its dependable protection. The user-friendly display of the ByBit exchange makes trading simple and convenient.
Who owns Bybit? ›
Bybit was founded by Ben Zhou, who previously had considerable experience in the forex industry. He noticed the need for a more stable and reliable cryptocurrency trading platform, which was the impetus behind the creation of Bybit.
Is Bybit trusted? ›
Bybit is one of the most trusted unregulated “off-shore” crypto exchanges.
Why can't Americans use Bybit? ›
Bybit does not accept users from the United States due to regulatory restrictions. You need to access the website from an IP address other than the US or country where Bybit is unavailable.
Is it safe to hold crypto on Bybit? ›
Is it safe to deposit and store my cryptocurrencies with Bybit? Yes, it is safe to do so. In order to maintain a high level of asset security, Bybit uses an industry-leading and multi-signature cold wallet to store 100% of our traders' deposited assets.
How do I get my money back from Bybit? ›
If you use the ByBit app, simply tap “Assets” followed by the “Withdraw” button. Enter your withdrawal wallet address or if you haven't withdrawn from ByBit before, click “Add” to add one.
Which country is Bybit banned? ›
As stated in Section 12.3 of the Service Agreement, Bybit does not offer services or products to Users in a few excluded jurisdictions including the United States, the Chinese Mainland, Hong Kong, Singapore, Canada, France, the United Kingdom, North Korea, Cuba, Iran, Uzbekistan, Russian-controlled regions of Ukraine ( ...
Why can't I withdraw from my Bybit? ›
Withdrawal Limit Exceeded
Bybit imposes a withdrawal limit based on the users' KYC level as follows. You will need to complete the respective level of identity verification (KYC) according to your withdrawal amount. For more information, please refer to: FAQ — Individual KYC.
Is Bybit a Chinese company? ›
The Dubai-headquartered company is allowing the "overseas Chinese community" - mainland users residing outside their home country - to open accounts and trade on its platform, Bybit said in a statement late Thursday.
Clearly, if comparing Binance vs Bybit, the bigger active user base is gathered by Binance with around 128M users. Whereas Bybit has around 10M active users.
Is Bybit licensed in USA? ›
Due to strict regulations on cryptocurrency exchanges, Bybit is not legal in the United States, which means American users are officially barred from using the platform. Some users might consider using a VPN to bypass this restriction.
Is Bybit shady? ›
Let's find out. Bybit is not a trusted broker because it is not regulated by a financial authority with strict standards. We would not open an account for ourselves with them. If you want to stay safe, only sign up with brokers that are overseen by a top-tier and stringent regulator.
Is my money safe in Bybit? ›
ByBit is one of the safest platforms for protecting your money. The exchange contains many different security measures designed to protect your assets at all costs. For instance, ByBit stores all your assets offline in cold storage. One of the benefits of cold storage wallets is that they are difficult to hack.
Can I withdraw money from Bybit to my bank account? ›
To withdraw with Local Bank Transfer, you will need to make a first fiat deposit to add your bank account for deposit and withdrawal on your Bybit account. You are allowed to link up to three withdrawal accounts, which must be the first three accounts you created for deposit purposes.
Is Bybit a future? ›
Bybit offers a range of USDC-settled contracts for traders to choose from, including both USDC Perpetual and USDC Futures Contracts. USDC Perpetual Contracts are a type of contract that has no expiration date and allows traders to go long or short using USDC as margin.
Does Bybit have liquidation risk? ›
Liquidation is triggered when the Mark Price reaches the liquidation price. In Cross Margin and Portfolio Margin modes, the risk of a Unified Trading Account is assessed using the Initial Margin Rate (IMR) and Maintenance Margin Rate (MMR) of all positions.
Why can't i withdraw money from Bybit? ›
— Please make sure that the name on your withdrawal account matches the name that you've provided for Identity Verification / Business Verification on Bybit. Otherwise, the withdrawal may not be processed successfully.
