Notcoin

Arkham

Ben Zhou, the CEO of the cryptocurrency exchange Bybit, addressed rumors about the platform being hacked and insolvent in a post shared on X.
On May 22, rumors of an insolvent exchange <a href="https://twitter.com/txsequencer/status/1793079234581426192" target="_blank" rel="noopener nofollow"></a><a href="https://twitter.com/txsequencer/status/1793079234581426192" target="_blank" rel="noopener nofollow">circulated</a> on X. As the rumor spread, it was further magnified by a barrage of <a href="https://twitter.com/MatriXBT/status/1793099269551116448" target="_blank" rel="noopener nofollow">memes</a> copying a popular FTX-related <a href="https://twitter.com/worstcontrarian/status/1589106527906197506" target="_blank" rel="noopener nofollow">post</a> spreading on X, but this time, the posts mentioned Bybit. 
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 Source: <a href="https://twitter.com/ekrii3/status/1793233349592723479" target="_blank" rel="noopener nofollow">Ekri</a>
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Some made <a href="https://twitter.com/tryingtamakeit/status/1793122051479507119" target="_blank" rel="noopener nofollow">jokes</a> 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. 
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 Source: <a href="https://twitter.com/s0ybo1/status/1793098190973239485" target="_blank" rel="noopener nofollow">s0y bo1</a>
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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&nbsp;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 <a href="https://twitter.com/benbybit/status/1793545500068864007" target="_blank" rel="noopener nofollow">wrote</a>: 
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 “None of the rumours that I have see so far have any real facts supporting it, please be aware.”
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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 <a href="https://www.bybit.com/app/user/reserve-ratio" target="_blank" rel="noopener nofollow">shows</a> that the trading platform holds assets worth more than 100% of user deposits, ensuring the exchange will have all the assets readily available if users wish to withdraw them. 
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 Bybit’s total net worth and token allocation. Source: Nansen
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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. 
Related: <a href="https://cointelegraph.com/news/okx-binance-bybit-triple-volumes-2023">OKX, Binance and Bybit monthly volumes tripled since late 2023</a>
Apart from insolvency rumors, Bybit also faced regulatory challenges earlier in May. On May 16, France’s securities regulator, the Autorité des Marchés Financiers, reiterated a warning to its investors that the crypto exchange is <a href="https://cointelegraph.com/news/france-securities-regulator-bybit-warning">not registered as a digital asset provider</a> 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. 
Magazine: <a href="https://cointelegraph.com/magazine/bybit-notcoin-listing-debacle-china-firm-profit-after-crypto-buy-asia-express/">Bybit’s Notcoin listing debacle, China firm’s profits up 12-fold after crypto buy: Asia Express</a>

Bybit CEO refutes insolvency rumors, shares proof-of-reserves

Cointelegraph

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