Some Malicious Powers Want Bybit Exchange Dead?

LUCKNOW (CoinChapter.com) — Cryptocurrency exchange Bybit found itself at the center of insolvency rumors across social media platform X on May 22. However, the exchange’s CEO, Ben Zhou, refuted the claims and provided transparency into the exchange’s reserves and asset holdings.

Who The Hell Started Insolvency Rumor?

It all started when rumors of an insolvent exchange circulated on X on May 22.

The rumors appeared to have originated through a barrage of memes and posts that drew parallels to the FTX exchange collapse.

Some users jokingly discussed withdrawing funds, while others sought to understand the validity of the circulating claims.

One theory suggested that a bug or misinterpretation of a proof-of-reserves graph from Arkham Intelligence may have sparked the initial rumor about the Bybit exchange insolvency,

The graph seemingly depicted Bybit’s wallets being drained, which raised concerns about a potential hack or liquidity issues. However, upon examining the exchange’s wallets independently, it became evident that the funds remained intact.

Recognizing the potential damage such rumors could inflict, Ben Zhou denied the Bybit exchange insolvency allegations in a straightforward post, stating:

None of the rumors that I have seen so far have any real facts supporting it, please be aware.

How Transparent is Bybit Exchange?

However, Zhou backed up his statement by sharing Bybit’s official proof-of-reserves (PoR) and a Nansen dashboard link, providing complete transparency into the exchange’s asset holdings.

The PoR confirmed that the exchange holds assets worth more than 100% of user deposits. This proof ensured users that the exchange had sufficient funds readily available if users wished to withdraw their holdings.

Furthermore, the Nansen dashboard data revealed that Bybit’s wallets collectively hold over $11 billion in crypto assets.

Nansen, a blockchain analytics platform, clarified that while this figure did not represent a comprehensive statement of Bybit’s actual assets or reserves, it did provide a clear snapshot of the substantial holdings within the exchange’s disclosed wallets.

The swift and transparent response from Bybit’s CEO, coupled with the on-chain data provided, effectively countered the insolvency narratives and reassured the community about the exchange’s financial stability.

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However, Bybit’s challenges extend beyond this recent PR crisis. On May 16th, France’s securities regulator, the Autorité des Marchés Financiers (AMF), reiterated a warning to investors. It said that the exchange is not registered as a digital asset provider in the country. The AMF further said that it had the authority to block the trading platform, which was “providing its services illegally” in France.

Despite these regulatory hurdles, the exchange has experienced growth. Reports indicate that its monthly trading volumes have tripled since late 2023. But indeed, some malicious powers want to kill Bybit through such baseless rumors — that’s pretty clear.