The cryptocurrency community was shaken by rumors that Bitcoin and altcoin exchange Bybit would go bankrupt. These rumors, triggered by a misleading graphical error on an on-chain analysis platform, sent fluctuations in the market and caused a series of shooting waves. However, Bybit corrected the misinformation and assured users of its financial soundness.
Rumors created panic for the Bitcoin exchange
On May 22, rumors of a bankrupt exchange in X circulated. As the rumor spread, it grew larger with a flurry of memes replicating a popular FTX-related post spread on X, only this time Bybit was mentioned in the posts. The panic was caused by a bug in Arkham Intelligence’s platform that misrepresented a significant decline in Bybit’s assets. This visual misrepresentation, combined with ongoing unease in the crypto community following high-profile crashes such as FTX and Celsius, has led to rumors quickly spreading about Bybit’s potential bankruptcy.
Social media became a breeding ground for speculation, with memes reflecting the collapse of FTX and users voicing concerns about frozen funds. Although the situation escalated further with reports of withdrawals exceeding $50 million, these were later contextualized as a small fraction of Bybit’s total reserves. Bybit quickly responded to the rumors. A spokesperson stressed that the allegations were unfounded and suggested that Bybit’s strict compliance measures may have let some down.
Bybit CEO responded
More importantly, Bybit directed users to the official Proof of Reserves (POR) report. This report acts as a financial audit, transparently showing Bybit’s asset holdings and providing evidence of its ability to meet users’ withdrawal requests. Additionally, Bybit also highlighted data from reputable on-chain analysis platforms such as Nansen and DefiLlama to confirm its financial soundness.
Bybit’s CEO, Ben Zhou, further addressed the rumors on social media and made it clear that there was no untrue basis behind it. He provided additional resources, such as a link to the POR report and a Nansen image showing Bybit’s wallet holdings.
Besides bankruptcy rumors, Bybit also faced regulatory challenges in early May. cryptokoin.com As we reported, France’s securities regulator, Autorité des Marchés Financiers, made a statement. On May 16, it reiterated its warning to investors that the crypto exchange was not registered as a crypto asset provider in the country. The regulator said it had the power to block any trading platform “illegally providing its services” in the country.
To be informed about the latest developments, follow us twitter‘in, Facebookin And InstagramFollow on and Telegram And YouTube Join our channel!