Dubai-based cryptocurrency exchange Bybit has suspended U.S. dollar deposits via bank transfers in response to a "service interruption by its partners." Funds can be withdrawn by wire transfer until March 10.
In a March 4 blog post, the cryptocurrency firm said it is “no longer offering USD deposits via wire transfer (SWIFT) and wire transfer (for U.S. banks).” Alternatively, users can continue to pay via Advcash wallet or with a credit card. The exchange noted that the withdrawal program through the Advcash wallet will be available soon. Bybit claims users' funds are "safe and secure," but urges customers who plan to withdraw U.S. dollars to "do so as soon as possible to avoid potential disruption.
Bybit is one of the companies that does business with crypto lender Genesis Global Trading, which filed for Chapter 11 bankruptcy protection on Jan. 20. According to Bybit CEO Ben Zhou, exposure through its investment arm Mirana Asset Management amounts to $150 million. According to Zhou, $120 million of the funds have been pledged and have been liquidated. In addition, he emphasized that all customer funds go into separate accounts, and Bybit's money-making products do not use Mirana.
The suspension comes just a day after Silvergate Bank announced plans to terminate its digital asset payments network, claiming the termination was a “risk-based decision.” The network is the primary gateway for dollars in and out of the U.S. cryptocurrency industry.
Regulatory pressure and market outflows after cryptocurrency exchange FTX crashed in November 2022 are prompting U.S. banks to reduce exposure to crypto assets.
In February, Binance announced the suspension of USD bank transfers. Previously, the exchange said in January that its SWIFT transfer partner, Signature Bank, would only process transactions for users with U.S. dollar bank accounts of more than $100,000. Signature Bank previously announced that it would significantly reduce cryptocurrency deposits.
