Bybit Insolvency Rumors denied as CEO shares Proof of Reserves
Ben Zhou, the CEO of Bybit, one of the leading cryptocurrency exchanges in the top three by trading volume with more than 30 million registered users, has addressed rumors about the exchange being hacked and insolvent in a post shared on social media by X (formerly known as Twitter).
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
this is FALSE news
— s0y bo1 (@s0ybo1) May 22, 2024
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
As rumours and reports circulated around the crypto community yesterday about the centralized exchange, Bybit, facing financial insolvency, Ben Zhou tweeted early Thursday morning via X that none of the rumours he has seen so far about the company being insolvent or hacked have any real facts supporting them, and these claims were categorically denied.
He added that Bybit updated its proof of reserves (POR) in May with a total of more than $11 billion on the Bybit wallet, which can be viewed through Nansen. He directed concerned users to visit the updated POR for the exchange.
On May 22, there were rumors on X that the exchange was bankrupt. This, in turn, led to a host of memes and posts that replicated a viral FTX-related post that was compared to Bybit. The FTX exchange, which collapsed in November 2022, filed for bankruptcy after it was alleged that its owners had misappropriated and embezzled user money. The exchange's CEO, Sam Bankman-Fried, was given a 25-year prison term and mandated to repay $11 billion.
A social media user speculated that the rumor may have originated from a bug in an Arkham Intelligence proof-of-reserves graph. Bybit's wallets appeared to be depleted in the graph, which could cause some to wonder if the exchange was compromised or bankrupt.
Nevertheless, the trading platform's wallets continued to indicate that the fund was still there when viewed independently on Nansen. The analytics platform, Nansen, however, also stated that this was not intended to be a comprehensive statement of the exchange's actual assets or reserves.
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