Speculation surrounding Bybit’s potential hack or insolvency led to concerns within the crypto community, prompting CEO Ben Zhou to address these claims directly on May 23. Amid social media rumors questioning Bybit’s solvency and security, Zhou reassured users and the wider community of the exchange’s financial stability and robust security measures. He emphasized Bybit’s recent update of its Proof of Reserves (POR) and highlighted the platform’s extensive security measures to dismiss any doubts about its safety. Zhou’s proactive approach aimed to quell concerns and reaffirm Bybit’s strong financial position, addressing the rumors head-on and providing reassurance to users.
In response to escalating rumors, Zhou took to Twitter to refute claims of Bybit being insolvent or hacked, underscoring the platform’s financial solvency and security. Bybit’s updated Proof of Reserves (PoR) and the confirmation of holding over 11 billion dollars in assets through Nansen data further supported Zhou’s reassurance. The lack of substantial evidence behind the rumors fueled by social media speculation prompted Zhou to urge caution and remind users to rely on verified facts rather than unverified rumors. His direct engagement with users and the wider crypto community aimed to maintain trust and confidence in Bybit amid heightened scrutiny of cryptocurrency exchanges following recent security breaches and insolvency concerns within the industry.
Despite Bybit’s global prominence and 20 million registered users, the Autorité des Marchés Financiers (AMF), France’s financial commission, issued a warning against using the ByBit crypto platform due to non-compliance with French regulations. Bybit was blacklisted in France in May 2022 for operating without a Digital Asset Service Provider (DASP) license, prompting the AMF to caution investors about the risks of using the platform. The AMF’s warning against Bybit followed similar actions taken against other non-compliant exchanges, such as the Bitget crypto platform, which was blacklisted in November 2023. Bybit faced further scrutiny when the Securities and Futures Commission (SFC) in Hong Kong labeled it a “suspicious” exchange, listing some of its products as questionable investment instruments.
In an effort to expand its services and reach new markets, Bybit recently launched Bybit.nl, a regulated trading platform catering to Dutch users through a collaboration with SATOS, a well-established Bitcoin-focused company in the Netherlands. Bybit.nl enables Dutch users to engage in fiat currency deposits and withdrawals, trade over 300 cryptocurrency pairs, and benefit from enhanced security measures. The partnership with SATOS and compliance with regulatory requirements in the Netherlands demonstrate Bybit’s commitment to expanding its services while adhering to local regulations. Bybit’s strategic move to enter the Dutch market comes as part of its broader growth strategy to provide secure and regulated trading options for users in different regions.
