Ben Zhou, CEO of cryptocurrency exchange Bybit, has now dispelled negative rumors about the platform’s liquidity issues or an alleged hack. The speculation that began on May 22 was fueled in part by fake proof-of-reserves data relayed by Arkham Intelligence.
Similar to recent events involving FTX, Bybit has been under scrutiny due to fears of fund withdrawals and doubts over its stability. Sensing the growing unease, Zhou took to social media to directly address the concerns.
Reassurance and transparency:
To support this claim about Bybit’s financial stability, Zhou asked participants to Bybit PoR and a Bybit-Nansen dashboard. This table shows all existing wallets on Bybit and the assets stored there, proving that the exchange owns more than 100% of customer funds.
By checking the PoR data, it was established that Bybit owns as much as $11 billion worth of cryptocurrencies, covering all user withdrawal requests.
Using Nansen data, it can be seen that Bybit does indeed have significant holdings, but the data obtained should not be considered a complete picture of the exchange’s assets or reserves as reported by the company.
Regulation continues to be a barrier
However, Bybit still faces constant challenges from regulators. The AMF (Autorité des Marchés Financiers) has again warned Investors against Bybit Two weeks ago, the financial markets regulator in France published a new notice that usually targeted Bybit.
The AMF called on customers to “prepare for the possibility of a sudden STOPPAGE of the platform’s services” because Bybit is not registered with the DASP and is carrying out illegal activity in France.
This is a warning from the AMF that resembles a similar warning from the Hong Kong Securities and Futures Commission (SFC) in March this year, which placed Bybit as one of the questionable exchanges it warned the public not to trade with as it is not authorized.
Also see: This Week’s Crypto Hack Report: Analyzing Recent DeFi Hacks and Security Breaches