Zhou shared a link to Bybit’s proof-of-reserves (PoR) and a Nansen dashboard, offering a transparent view of Bybit’s financial holdings and the total value of its crypto assets.
In the latest developments in the crypto space, Ben Zhou, CEO of crypto exchange Bybit, has denied circulating rumors suggesting that the exchange is facing insolvency issues.
The CEO refuted all insolvency rumors and provided evidence of Bybit’s financial holdings and digital assets.
On May 23, Zhou took to Twitter and other official channels to address the concerns directly. He claimed that the accusations had no factual basis.
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
Bybit’s CEO Releases Proof-of-Reserves
Zhou shared a link to Bybit’s proof-of-reserves (PoR) and a Nansen dashboard, offering a transparent view of the exchange’s financial holdings and the total value of its crypto assets.
According to the PoR, it revealed that the trading platform holds assets exceeding 100% of user deposits, ensuring all assets are available for withdrawal.
The Nansen dashboard disclosed that Bybit’s wallets hold over $11 billion in crypto assets, reflecting the total value of the tokens in Bybit’s provided addresses. However, the analytics platform noted this wasn’t a complete and exhaustive statement of the exchange’s actual assets or reserves.
Insolvency Rumors and Regulatory Issues
On May 22, rumors of Bybit’s insolvency circulated on the X platform, fostered by memes from a popular FTX-related post that mentioned Bybit.
Some users joked about withdrawing funds, while others sought clarity. One user speculated that a bug in an Arkham Intelligence proof-of-reserves graph might have sparked the rumor.
The graph disclosed that the exchange’s wallet was drained, which raised concerns about a potential hack or insolvency. However, independent assessments of the wallets confirmed that the funds remained intact.
In addition, Bybit encountered regulatory hurdles earlier this month. On May 16, France’s securities regulator, the Autorité des Marchés Financiers, repeatedly sent a warning that the exchange is not registered as a digital asset provider in the country.
In response, the exchange stated that it is in close collaboration with the AMF and is making ongoing efforts to obtain a license. The company indicated its decision to exit the local market in 2023 to ensure full compliance with local regulations.
