Baybit CEO denies bankruptcy rumors, shares evidence
In a post on X, the CEO of the cryptocurrency exchange BiBit addressed the rumors that the platform was hacked and not bankrupt.
In the year On May 22, rumors of a bankruptcy exchange spread on X. As word spread, the onslaught of memes escalated by copying a popular FTX-related post on X, but this time the posts mentioned Bybit.
Some made jokes about withdrawing their money from the exchange, while others tried to understand the situation in depth.
One cryptocurrency user speculated that an error in the confirmation graph from Arkham Intelligence may have sparked the rumor.
In the graph, ByBit wallets appear to be leaking, which may make people worry that the exchange has been hacked or sued. However, when viewed separately, the trading platform's wallets showed that the funds were still available.
A day later, Bibbitt clarified that none of the rumors were true. On May 23, Zhou officially announced that the rumor on X was false. wrote:
“None of the rumors I've seen so far have any real facts to back them up, please be careful.”
In addition, Zhou also shared a link to Bybit's Proof of Reserve (PoR) and a Nansen dashboard that shows all Bybit wallets and the amount of assets they hold.
The PoR shows that the trading platform holds assets worth more than 100% of users' deposits, ensuring that all assets are readily available if the exchange wants to withdraw them.
Nansen Dashboard data also revealed that Bybit wallets have more than $11 billion in crypto assets. According to Nansen, the net value shows the total value of token holdings in the addresses provided by Bybit.
However, the analytics platform also stated that this is not a comprehensive statement of Bybit's actual assets or reserves.
Related: OKX, Binance and Bybit Monthly Volumes Tripled by End of 2023
In addition to bankruptcy rumors, Bybit also faced regulatory challenges in early May. On May 16, France's securities regulator, the Autorité des Marchés Financiers, reiterated its warning to investors that the crypto exchange is not registered as a digital asset provider in the country.
The regulator said it has the power to ban trading platforms that are “providing their services illegally” in the country.
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