Bybit CEO Ben Zhou swiftly responded to swirling rumors about the exchange's alleged hacking and bankruptcy in a post shared on social media platform X. Speculation about the platform's financial woes began circulating on May 22, gaining momentum as memes flooded X feeds, drawing comparisons to similar incidents involving FTX. Users engaged in discussions ranging from withdrawing funds to seeking clarity on the situation.
One theory posited by a cryptocurrency user suggested that an anomaly in Arkham Intelligence's proof-of-reserve chart might have fueled the rumors. The chart depicted a depletion in Bybit's wallets, prompting concerns about potential hacking or bankruptcy. However, closer examination revealed that the funds remained intact within the individual wallets on the trading platform.
Bybit swiftly dispelled the rumors the following day, with Zhou officially addressing the speculation on X. He emphatically stated that none of the circulating rumors were grounded in fact, urging users to exercise caution and discernment. Additionally, Zhou provided links to Bybit's Proof of Reserve (PoR) and a Nansen dashboard, offering transparency regarding the exchange's asset holdings.
The PoR showcased Bybit's robust asset reserve, exceeding 100% of user deposits, thereby ensuring full accessibility to user assets for withdrawal. Meanwhile, the Nansen dashboard displayed over $11 billion worth of crypto assets held across Bybit's wallets, reinforcing the platform's financial stability. However, it's worth noting that while the net worth represented the total token value in the provided address, it did not offer a comprehensive view of Bybit's actual assets or reserves.
Beyond grappling with bankruptcy rumors, Bybit also faced regulatory hurdles earlier in May. On May 16, France's securities regulator, Autorité des Marchés Financiers, reiterated warnings to investors, highlighting Bybit's lack of registration as a digital asset provider in the country. The regulator underscored its authority to block the exchange for its "illegal provision of services" within French jurisdiction, adding another layer of scrutiny for the embattled platform.
