June 4, 2024
Bybit CEO Addresses insolvency rumors,
People in Crypto

Bybit CEO Ben Zhou Addresses Insolvency Rumors

Bybit CEO Responds to Insolvency Rumors

Ben Zhou, the CEO of cryptocurrency exchange Bybit, recently addressed circulating rumors regarding the platform’s insolvency and potential hacking. In a post shared on X (formerly Twitter), Zhou firmly denied these allegations, providing transparency to the exchange’s users.

Rumors spark concern.

On May 22, rumors suggesting Bybit’s insolvency began to spread on X, igniting concerns among the crypto community. Memes and posts, reminiscent of the FTX scandal, proliferated with Bybit as the subject this time. Some users joked about withdrawing their funds, while others sought to understand the truth behind the rumors.

A cryptocurrency user speculated that a misinterpretation of a proof-of-reserves graph from Arkham Intelligence might have triggered the rumors. The graph seemingly showed Bybit’s wallets being depleted, causing fears of hacking or insolvency. However, a closer examination revealed that the platform’s funds were intact.

Bybit CEO’s Assurance

Bybit CEO Ben Zhou quickly addressed the rumors on May 23. Zhou stated unequivocally on X, “None of the rumors that I have seen so far have any real facts supporting them; please be aware.” To further reassure users, Zhou provided a link to Bybit’s proof of reserves (PoR) and a Nansen dashboard displaying the assets held by Bybit’s wallets.

The PoR indicated that Bybit holds more than 100% of user deposits, ensuring that all user assets are available for withdrawal. According to Nansen, Bybit’s wallets contained over $11 billion in crypto assets. Despite this, Nansen clarified that this data should not be taken as a comprehensive statement of Bybit’s total assets or reserves.

Regulatory Challenges

In addition to insolvency rumors, Bybit faced regulatory scrutiny earlier in May. On May 16, the Autorité des Marchés Financiers (AMF), France’s securities regulator, issued a warning to investors. The AMF highlighted that Bybit is not registered as a digital asset provider in France and cautioned that the exchange was operating illegally in the country.

The regulator asserted its authority to block the platform, raising further concerns for Bybit amidst the insolvency rumors.

Conclusion

Ben Zhou, the Bybit CEO, has actively worked to dispel insolvency rumors, providing proof of the platform’s financial stability. Despite facing regulatory challenges in France, Bybit remains committed to maintaining transparency and ensuring the security of its users’ assets. The situation underscores the importance of accurate information and regulatory compliance in the cryptocurrency industry.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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