On May 22, speculation spread online alleging Bybit’s financial trouble. The rumors, fueled by memes referencing the recent FTX collapse, caused concern among users. Some questioned the exchange’s stability, while others attempted to withdraw their funds.
Investigations revealed a misinterpreted proof-of-reserves graph from Arkham Intelligence a potential source of the rumors. The graph, which tracks exchange wallet balances, appeared to show Bybit’s funds being depleted. However, independent verification confirmed that Bybit’s wallets held all user assets.
Bybit CEO Ben Zhou addressed the situation on May 23. He dismissed the rumors as baseless and offered proof-of-reserves (PoR) data. The PoR confirms Bybit holds enough assets to cover all user deposits, ensuring smooth withdrawals.
Additionally, Bybit provided a Nansen dashboard link displaying their wallets and corresponding crypto holdings. The dashboard indicated over $11 billion in user assets held by Bybit. However, Nansen clarified that this data doesn’t represent Bybit’s complete financial picture.
This incident follows Bybit’s regulatory hurdles in France. In mid-May, the French financial authority warned investors of Bybit’s unregistered status in the country. The regulator threatened to block Bybit’s operations if they continued to offer services without proper registration.
