Ben Zhou, the CEO of Bybit crypto exchange, has vehemently refuted rumors circulating on social media regarding the alleged insolvency of the exchange. In response to these claims, Zhou stated that the rumors lacked any factual basis and urged the public to be cautious when believing such unfounded allegations.
To support his dismissal of the insolvency rumors, Zhou shared Bybit’s Proof of Reserves, which showcased the exchange’s assets stored across different wallets. The Proof of Reserves website confirmed that all assets were fully collateralized, with reserve ratios exceeding 100% for Bitcoin, Ethereum, USDT, and USDC. Specifically, the ratios stood at 116%, 106%, 107%, and 129%, respectively. Additionally, Nansen’s data revealed that Bybit held over $11.3 billion in assets, although a disclaimer on the dashboard clarified that it was not a comprehensive statement of the actual reserves.
0xngmi, the pseudonymous co-founder of DeFillama, also weighed in on the situation, downplaying community concerns by highlighting that the outflows from the platform were minimal compared to its asset balance. Despite this reassurance, DeFillama’s CEX transparency dashboard indicated that Bybit users had withdrawn $115 million in digital assets as of May 23, making it the second-highest amount of withdrawals among centralized trading platforms monitored by crypto analytics.
While Bybit faces allegations of insolvency, it also grapples with regulatory hurdles in France. French authorities have cautioned crypto investors that Bybit is not registered as a digital asset provider in the country, potentially leading to restrictions on access to the platform’s website. Moreover, the collapse of FTX in 2022, once a leading crypto platform, has fueled the crypto community’s skepticism toward centralized exchanges. The mismanagement of customer funds by FTX’s leadership team, resulting in founder Sam Bankman-Fried’s conviction on criminal charges and a 24-year prison sentence, has heightened concerns about the trustworthiness of such platforms.
The rumors surrounding Bybit’s insolvency have been firmly denied by CEO Ben Zhou, who provided evidence of the exchange’s asset collateralization to refute the claims. Despite facing regulatory challenges and increased community distrust, Bybit continues to uphold its transparency and operational integrity in the crypto market. It is crucial for investors and users to discern between baseless rumors and factual information when assessing the stability and reliability of cryptocurrency exchanges like Bybit.