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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- May 25, 2024 08:46 UTC
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Bybit’s Ben Zhou Shuts Down Insolvency Speculation With $11B Proof of Reserves
Rumors of Bybit's insolvency or hack were sparked by a mistake in Arkham Intelligence's data.
Bybit provided Proof-of-Reserve (PoR) data and a Nansen dashboard to verify their holdings.
The French AMF warned investors about Bybit due to its unregistered status in the country.
Ben Zhou, the CEO of the cryptocurrency exchange Bybit, has now effectively dispelled negative rumours of the exchange’s liquidity issues or an alleged hack. The speculation that began on May 22 was especially actuated by false proof-of-reserves data relayed by Arkham Intelligence.
Similar to recent events involving FTX, Bybit faced scrutiny amid fears of fund withdrawals and doubts about its stability. Sensing the growing unease, Zhou took to social media to address concerns head-on.
Reassurance and Transparency:
To support this claim about Bybit’s financial stability, Zhou directed participants to Bybit PoR and a Bybit-Nansen dashboard. This board presents all wallets existing on Bybit and the assets are stored in it, proving that the exchange has over 100% of the clients’ funds.
Checking the PoR data, it was established that Bybit has not less than $ 11 billion worth of cryptocurrencies, covering all users’ withdrawal requests.
Using the Nansen data, it can be seen that Bybit indeed has significant holdings however the data obtained should not be considered as the full picture of the exchange’s assets or reserves as stated by the firm.
Regulations Continue to Be a Hurdle
Nevertheless, there are still constant challenges from the regulators to Bybit. AMF (Autorité des Marchés Financiers) has again warned investors against Bybit Two weeks ago, the securities regulator in France gave out a new notice that ordinarily pointed to Bybit.
The AMF called on customers to “prepare for the possibility of the platform STOPPING services suddenly” because Bybit is not registered with DASP and conducts unlawful business in France.
This comes as a warning from the AMF which resembled a similar warning from Hong Kong’s Securities and Futures Commission (SFC) in March this year placing Bybit as one of the dubious exchanges it warned the public not to transact with since it is unlicensed.
Also Check Out: Crypto Hack Report This Week: Analyzing Recent DeFi Hacks and Security Breaches
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