Bitrabo Editorial
The crypto community was recently alarmed by rumors of insolvency issues plaguing a crypto exchange, with suspicion falling on Bybit. Bybit’s CEO, Ben Zhou, swiftly denied these rumors and reassured investors of the exchange’s stability.
Clarification on Rumors by Bybit’s CEO
Reports emerged on private channels regarding a crypto exchange facing insolvency, sparking concerns reminiscent of past incidents. These rumors were initially fueled by a drop in Arkham Intelligence’s Proof-of-Reserves (PoR) graph from $11 billion to $6 billion.
An observant user debunked these claims by pointing out flaws in Arkham’s graph, attributing it to a specific wallet glitch that misrepresented over $4 billion in funds. The community awaited clarification amidst humorous memes and references to past crypto debacles, urging thorough verification of news before spreading fear, uncertainty, and doubt (FUD).
Addressing the speculations, Bybit’s CEO, Ben Zhou, confirmed the lack of a hack or insolvency, sharing a recent POR snapshot that showcased the exchange’s $11 billion in assets. Zhou emphasized the continuity of Bybit’s reserves amid ongoing stability.
Regulatory Scrutiny on Bybit in the Cryptocurrency Industry
Amidst these developments, Bybit has faced regulatory challenges, notably in France where authorities flagged the exchange for operating without proper licensing. The French financial watchdog, Autorité des Marchés Financiers, cautioned users about Bybit’s blacklist status in the country since 2022, signaling potential restrictions on access.
Similarly, Hong Kong’s Securities and Futures Commission identified Bybit as a “suspicious” platform earlier, highlighting the regulatory crackdown on unregistered entities in the region. The commission flagged Bybit’s unlicensed status and potential risks associated with investing in unregulated platforms.