Bybit CEO Clears the Air on Insolvency Rumors

The situation was intensified by memes reminiscent of those that circulated during the FTX scandal, now targeting Bybit.

Ben Zhou, the co-founder and CEO of Bybit, addressed these concerns and provided evidence to counter the claims.

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These rumors led to mixed reactions from users, with some joking about withdrawing their funds.

One user suggested that a misinterpretation of data from Arkham Intelligence might have sparked the concerns. The data seemed to indicate that Bybit's wallets were being drained, leading to fears of a possible hack or insolvency.

On May 23, Zhou publicly refuted the rumors on X, stating that none of them were evidenced.

To make everything clear, he shared links to Bybit's Proof-of-Reserves (PoR) and a Nansen dashboard, which detailed the crypto exchange's assets. The PoR demonstrated that Bybit holds assets exceeding 100% of user deposits, guaranteeing that all user funds are secure and available for withdrawal at any time.

According to the Nansen dashboard, Bybit's wallets contain over $11 billion in crypto. However, Nansen clarified that this data represented the value of the tokens in the provided addresses but was not a comprehensive statement of Bybit's total assets or reserves.

Despite the initial panic, the response from Bybit and the evidence provided by Zhou have reassured many users.

In other news, similar concerns surrounded the Rain crypto exchange this month. ZachXBT reported that Rain had been "likely exploited" for $14.8 million, and the crypto exchange's co-founder later released a statement ensuring the security of customer funds.