Ben Zhou, CEO of cryptocurrency exchange Bybit, has addressed circulating rumors about the platform’s hacking and insolvency.
He denied all insolvency rumors and shared evidence of Bybit’s financial holdings and crypto assets.
Bybit CEO Shares Proof-of-Reserves
In a May 23 X post, Zhou denied the allegations, asserting that they have no factual basis.
“None of the rumours that I have seen so far have any real facts supporting it. Please be aware,” Zhou wrote.
hearing some rumours about Bybit being insolvent or hacked and etc. Please note that we have updated our POR this month as well as you can view all Bybit wallet through Nansen (Total more than 11B). None of the rumours that I have see so far have any real facts supporting it,…
— Ben Zhou (@benbybit) May 23, 2024
Zhou also shared a link to Bybit’s proof-of-reserves (PoR) and a Nansen dashboard. These resources provide a transparent view of Bybit’s financial holdings and the total value of its crypto assets.
The PoR shows that the trading platform holds assets worth more than 100% of user deposits, ensuring that all assets are readily available if users wish to withdraw them.
The Nansen dashboard data revealed that Bybit’s wallets contain over $11 billion in crypto assets. According to Nansen, this net worth reflects the total value of the token holdings in the addresses provided by Bybit.
However, the analytics platform noted that this was not meant to be a comprehensive statement of Bybit’s actual assets or reserves.
Insolvency Rumors and Regulatory Challenges
On May 22, rumors about Bybit’s insolvency spread on X, fueled by memes from a popular FTX-related post that mentioned Bybit instead.
While some users joked about withdrawing their funds, others sought to understand the situation more deeply. A cryptocurrency user speculated that a bug in a proof-of-reserves graph from Arkham Intelligence might have caused the rumor.
this is FALSE news
it’s bybit
there is a bug in the @ArkhamIntel proof of reserves graph that is likely causing the rumour
if u check their wallets individually u can easily prove the graph is broken https://t.co/gRI78d1cGu pic.twitter.com/lEmaGpei2P
— s0y bo1 (@s0ybo1) May 22, 2024
The graph seemingly showed Bybit’s wallets being drained, causing concerns about a potential hack or insolvency. However, independent views of the wallets confirmed that the funds were intact.
In addition to insolvency rumors, Bybit also faced regulatory challenges earlier in May. On May 16, France’s securities regulator, the Autorité des Marchés Financiers, reinforced a warning that Bybit is not registered as a digital asset provider in the country and stated it had the authority to block the platform, which was “providing its services illegally” in the country.
Bybit responded, stating that it had been working very closely with the AMF and was in the process of seeking a license. It mentioned that to ensure full compliance with local regulations, the company had decided to exit the local market in 2023.
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