Bybit crypto trade CEO Ben Zhou has firmly denied rumors concerning the trade’s alleged insolvency circulating on social media.
This week, obscure social media accounts started spreading these rumors, with one person suggesting {that a} bug in a proof-of-reserves graph from Arkham Intelligence might need sparked the hypothesis.
Zhou promptly dismissed these claims, stating they have been baseless. He mentioned:
“Not one of the rumours that I’ve see thus far have any actual info supporting it, please bear in mind.”
The CEO bolstered his level by sharing the trade’s Proof of Reserves, which confirmed Bybit’s belongings throughout numerous wallets.
The trade’s Proof of Reserves web site confirms that each one belongings are absolutely collateralized, with reserves exceeding 100%. Particularly, the reserve ratios for Bitcoin, Ethereum, USDT, and USDC are 116%, 106%, 107%, and 129%, respectively.
Moreover, Nansen’s information reveals that Bybit holds over $11.3 billion in belongings. Nonetheless, the dashboard included a disclaimer noting that it was not meant to be a complete assertion of Bybit’s precise reserves.
0xngmi, the pseudonymous co-founder of DeFillama, additionally downplayed group considerations, mentioning that outflows from the platform as of Might 22 have been minor in comparison with its asset steadiness.
Nonetheless, DeFillama’s CEX transparency dashboard confirmed that Bybit customers had withdrawn $115 million in digital belongings from the platform as of Might 23. This was the second-highest quantity of withdrawals throughout the reporting interval among the many centralized buying and selling platforms monitored by the crypto analytics platform.
In the meantime, some group considerations are unsurprising, provided that Bybit is dealing with a regulatory problem in France. French authorities have warned crypto buyers that Bybit will not be registered as a digital asset supplier within the nation, including that entry to the platform’s web site is perhaps blocked.
Furthermore, the crypto group’s mistrust of centralized exchanges has elevated following the high-profile collapse of FTX in 2022. FTX, as soon as one of many largest crypto platforms, collapsed after its management staff was discovered to have misused buyer funds. Its founder, Sam Bankman-Fried, was convicted on prison prices in November 2023 and obtained a 24-year sentence in March.
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