Crypto firm Bybit insolvency rumors, $50 million funds tanked out

The panic among Bybit customers caused outflows of $50 million in funds from the Bybit platform.

Bybit is an averagely popular cryptocurrency exchange founded in 2018. This platform specializes in derivatives trading, offering perpetual contracts on various cryptocurrencies such as Bitcoin, Ethereum, and others. Bybit is known for its user-friendly interface, high-leverage options, and robust security measures. This firm is headquartered in Singapore and serves a global user base.

On 21 May 2024, The Bybit crypto firm’s proof-of-reserve (PoR) graph on the Arkham Intelligence platform plummeted sharply, probably due to some kind of technical issue. 

Many Bybit customers considered that the Bybit team mismanaged funds & assumed that it was time to withdraw the funds from the platform, before bankruptcy.

      -----Cryptonews AD----->>>  

Sign up for a Bybit account and claim exclusive rewards from the Bybit referral program! Plus, claim up to 6,045 USDT bonus at . https://www.bybit.com/invite?ref=PAR8BE

  <<<-----Cryptonews AD-----    

 

Some crypto enthusiasts jumped to address the main issue & tried to convince the Bybit customer that there was no issue with actual reserved funds behind Bybit. 

this is FALSE news

it’s bybit

there is a bug in the @ArkhamIntel proof of reserves graph that is likely causing the rumour

if u check their wallets individually u can easily prove the graph is broken https://t.co/gRI78d1cGu pic.twitter.com/lEmaGpei2P

— s0y bo1 (@s0ybo1) May 22, 2024

In this insolvency rumor, the Bybit exchange faced a net outflow of $50 million worth of crypto assets from the platform within 24 hours.

So far no official information has come to the public domain regarding this information by the Arkham Intelligence team but another Crypto analytic firm Defillama reported that Bybit’s reserves are currently $9.45 billion & this is enough to remain confident for Bybit customers.

btw given the recent bybit insolvency rumors, reminder that we track all the assets deposited on their exchange

in the last 24h they've had a -50m outflow but they have 9.4bn assets so thats nothinghttps://t.co/nzmA8lBHUQ

— 0xngmi (@0xngmi) May 22, 2024

It is worth it to note that, In the last couple of years many crypto projects, & firms collapsed badly. In particular, the majority of the crypto lending platform collapsed & second-ranked popular crypto exchange FTX also collapsed badly in late 2022. 

So such types of negative news around any crypto firm is a very common reason to ignite fear waves among crypto investors.

Read also: Biden Administration hiring digital meme experts, is there anything about crypto memes?

Crypto firm Bybit insolvency rumors, $50 million funds tanked out

 

https://bitcoinik.com/crypto-firm-bybit-insolvency-rumors-50-million-funds-tanked-out/feed/

https://bitcoinik.com/crypto-firm-bybit-insolvency-rumors-50-million-funds-tanked-out/feed/