Bybit crypto alternate CEO Ben Zhou has firmly denied rumors in regards to the alternate’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 may need sparked the hypothesis.
Zhou promptly dismissed these claims, stating they had been baseless. He mentioned:
“Not one of the rumours that I’ve see to date have any actual information supporting it, please bear in mind.”
The CEO strengthened his level by sharing the alternate’s Proof of Reserves, which confirmed Bybit’s belongings throughout numerous wallets.
The alternate’s Proof of Reserves web site confirms that every one belongings are totally 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 exhibits that Bybit holds over $11.3 billion in belongings. Nevertheless, the dashboard included a disclaimer noting that it was not supposed to be a complete assertion of Bybit’s precise reserves.
0xngmi, the pseudonymous co-founder of DeFillama, additionally downplayed group considerations, stating that outflows from the platform as of Could 22 had been minor in comparison with its asset stability.
Nonetheless, DeFillama’s CEX transparency dashboard confirmed that Bybit customers had withdrawn $115 million in digital belongings from the platform as of Could 23.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 just isn’t registered as a digital asset supplier within the nation, including that entry to the platform’s web site could be 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 crew was discovered to have misused buyer funds. Its founder, Sam Bankman-Fried, was convicted on prison fees in November 2023 and obtained a 24-year sentence in March.
