Bybit CEO Dismisses Insolvency Rumors Amidst Regulatory Challenges
Summary:
Rumors indicating Bybit, a crypto exchange, facing insolvency spread rapidly amongst its user community. These rumors escalated due to a misunderstood proof-of-reserves graph. CEO Ben Zhou quickly dismissed these claims as baseless and shared supportive data including a link to Bybit's PoR and a Nansen dashboard reflecting over $11 billion in crypto assets owned by Bybit. In the meantime, the company is contending with legal issues raised by France's securities regulator.
Rumblings of impending financial collapse besieged cryptocurrency exchange Bybit recently, as rumors spread along the virality of online memes copied from a popular FTX-related post seen on the site 'X'. This time, the subject was Bybit rather than FTX. Added fuel to the fire were jests about withdrawing from the exchange and queries seeking more information on the matter. Some suggested that an error in the proof-of-reserves graph from Arkham Intelligence might have caused the speculations. The graph insinuated that Bybit’s wallets were depleting rapidly, raising questions about its financial health and security.
However, independent verification proved the exchanges' wallets were in fact quite healthy. Dismissing such conjectures, Bybit announced on May 23 that the rumors were unfounded. The declaration came directly from the CEO, Ben Zhou, on the platform 'X'. Zhou dispelled the rumors calling them devoid of factual basis and warned users to be vigilant of such unfounded claims. Moreover, Zhou shared Bybit’s proof-of-reserves (PoR) and a Nansen dashboard displaying all Bybit wallets and the assets they hold in an effort to provide clarity. The PoR confirms the platform holds more than all of its customers' assets, ensuring the seamless withdrawal of the same.
Alongside the PoR, the statistics from the Nansen dashboard reveal a staggering $11 billion worth of crypto assets in Bybit’s possession. Nansen explains these figures portray the total value of the tokens held in the addresses provided by Bybit. A disclaimer from the analytics platform clarified these figures are not a comprehensive statement of Bybit’s total assets or reserves.
While the company dealt with these rumors, it also encountered regulatory issues. France’s securities regulator, the Autorité des Marches Financiers, issued repeated warnings that Bybit is not a recognized digital asset provider in the country. Subsequently, it also claimed the authority to ban the platform which seemingly was operating unlawfully in the nation.
Published At
5/23/2024 12:08:26 PM
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