This week, online rumors claimed that a crypto exchange was experiencing insolvency issues, worrying the community. Amid the uncertainty, users identified Bybit as the exchange with alleged issues.
On Wednesday, Bybit CEO Ben Zhou refuted rumors of hacking or lack of solvency on X, reassuring investors that the exchange was operating normally.
Bybit CEO Dispels Rumors
On Tuesday, reports circulated of a crypto exchange insolvency on private chats. Rumors have sparked fears of another FTX-style debacle. Reports initially spiked when Arkham Intelligence’s Proof of Reserves (PoR) chart suddenly jumped from the $11 billion range to the $6 billion mark.
Bybit's assets drop in Arkham's graph. Source: S0ybo1 on X
An X user quickly pointed out that the news was false because the Arkham graphic was broken. The user explained that a specific wallet was causing a bug that was not showing more than $4 billion in funds in the chart. However, if verified individually, all assets appear on the wallets.
The community took the incident with humor, as many brightened the mood with memes and references to FTX’s collapse while awaiting clarification. A user sharing a “copypasta” post from 2022, mocking how rumors spread within the community. Part of the message reads:
Crypto prop offices are worse than teenage girls at 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 check Bybit’s POR and related information.
On May 23, Ben Zhou, CEO of Bybit recognized raised concerns and clarified that the crypto exchange was not hacked, as some seem to have suggested, nor was it insolvent. Zhou shared the POR snapshot of the May 8 exchange and linked to Nansen’s dashboard.
Bybit's net worth sits at $11 billion. Source: Nansen
The dashboard displayed the stock market’s $11 billion in assets. One of the charts reveals that the crypto exchange’s asset value remained above $10 billion this week, confirming that Bybit’s reserves have not declined.
At the time of writing, the Arkham graphic appears to be fixed. The platform’s POR chart for Bybit coincides with Nansen’s $11 billion chart.
Cryptocurrency regulators crack down on Bybit
The recent FUD (Fear, Uncertainty and Doubt) comes amid regulatory scrutiny of the crypto exchange. Last week, French authorities called Bybit to operate without a license in France.
The Financial Markets Authority (AMF) recalled that the stock exchange has been blacklisted in the country since 2022. Furthermore, the AMF affirmed its right to block the crypto platform’s website and advised users to save their assets before they become inaccessible.
Similarly, Hong Kong’s Securities and Futures Commission (SFC) labeled Bybit a “suspicious” platform in March. As a Bitcoinist reportedThe 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 has warned users of the “risks” of investing in an unregulated platform.
Total crypto market capitalization is at $2.54 trillion in the weekly chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, chart from TradingView.com
