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Bybit CEO Clears the Air on Insolvency Rumors

Key Takeaways

  • Rumors about Bybit's insolvency spread on X;
  • Ben Zhou, CEO of Bybit, refuted the rumors and shared Proof-of-Reserves to reassure users;
  • Bybit’s assets exceed user deposits, ensuring all funds are secure and available for withdrawal.
Bybit CEO Clears the Air on Insolvency Rumors

Crypto enthusiasts were recently alarmed by rumors suggesting that the Bybit crypto exchange had been hacked and was insolvent.

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.

Bybit CEO clears the air on insolvency rumors: Bybit's net worth and token allocation

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.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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