Ben Zhou, CEO of Dubai-based cryptocurrency exchange Bybit, has refuted circulating rumors that the platform has been hacked or is insolvent. Zhou addressed the speculations in a post on the social media platform X.
On May 22, rumors about an insolvent exchange began to spread on X, gaining traction through a flurry of memes that mimicked a popular post associated with the collapsed FTX exchange, but this time targeting Bybit. Some users joked about withdrawing their funds, while others sought to understand the situation more deeply.
A user speculated that the rumors might have originated from a bug in a proof-of-reserves (PoR) graph from Arkham Intelligence, which seemed to show Bybit’s wallets being drained. However, independent checks revealed that the trading platform’s wallets still contained the funds.
Zhou today clarified that the rumors were unfounded. In his post, he stated, “None of the rumors that I have seen so far have any real facts supporting it, please be aware.” He also shared a link to Bybit’s PoR and a Nansen dashboard displaying all Bybit wallets and their asset holdings.
hearing some rumours about Bybit being insolvent or hacked and etc. Please note that we have updated our POR this month as well as you can view all Bybit wallet through Nansen (Total more than 11B) . None of the rumours that I have see so far have any real facts supporting it,…
— Ben Zhou (@benbybit) May 23, 2024
The PoR indicates that Bybit holds assets exceeding 100% of user deposits, ensuring the exchange can meet all withdrawal requests. Nansen’s data showed that Bybit’s wallets contain over $11 billion in crypto assets. However, Nansen cautioned that this was not a comprehensive statement of Bybit’s actual assets or reserves.
The insolvency rumors come on the heels of regulatory challenges for Bybit. On May 16, France’s securities regulator, the Autorité des Marchés Financiers (AMF), reiterated a warning to investors that Bybit is not registered as a digital asset provider in the country. The AMF stated that it had the authority to block the trading platform, which it claimed was “providing its services illegally” in France.
The exchange announced the launch of Bybit.nl in the Netherlands on March 28, a new local trading platform compliant with Dutch regulations. The new offshoot offers local users access to cryptocurrency trading and educational resources.
