Ben Zhou, the CEO of the cryptocurrency exchange Bybit, addressed the rumors about the platform being hacked and insolvent in a post shared on X.

On May 22, rumors of an insolvent exchange circulated on X. As the rumor floated about, it was further magnified by a barrage of memes copying a popular FTX-related post spreading on X. Only this time, the posts mentioned Bybit.

On May 22, rumors of an insolvent exchange circulated on X.  As the rumor spread, it was amplified by a flood of memes copying a popular FTX-related post circulating on X. This time, however, the posts mentioned Bybit.

Some made jokes about withdrawing their funds from the exchange, while others tried to understand the situation more deeply.

A cryptocurrency user speculated that a bug in a proof-of-reserves graph from Arkham Intelligence might have prompted the rumor.

Within the graph, it looked like Bybit’s wallets were being drained, which may leave people to worry whether the exchange was hacked or insolvent. However, when viewed independently, the trading platform’s wallets still showed that the funds were still there.

A day later, Bybit clarified that none of the rumors were true. On May 23, Zhou officially announced on X that the rumors were false. He wrote:

“None of the rumours that I have see so far have any real facts supporting it, please be aware.”

In addition, Zhou also shared a link to Bybit’s proof-of-reserves (PoR) and a Nansen dashboard showing all Bybit wallets and the amount of assets they hold.

The PoR shows that the trading platform holds more than 100% of user assets. This ensures that the exchange will have all the assets readily available in case users wish to withdraw them.

The Nansen dashboard data also showed that Bybit’s wallets have over $11 billion in crypto assets. According to Nansen, the net worth shows the total value of the token holdings in the addresses provided by Bybit.

However, the analytics platform also disclaimed that this was not meant to be a comprehensive statement of Bybit’s actual assets or reserves.

Apart from insolvency rumors, Bybit also faced regulatory challenges earlier this month. On May 16, France’s securities regulator, the Autorité des Marchés Financiers, reiterated a warning to its investors that the crypto exchange is not registered as a digital asset provider in the country.

The regulator said that it had the authority to block the trading platform which was “providing its services illegally” in the country.

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