Bybit has Halted USD Bank Transfers: Details
- Popular crypto exchange Bybit has announced a pause on US dollar bank transfers due to issues with service outages with its partner.
- “USD deposits via Wire Transfer (SWIFT) and Wire Transfer (For US bank) are no longer available,” said the firm.
- The withdrawals via Wire Transfer (SWIFT) and Wire Transfer (For US banks) will be available until March 10, 2023, at 12 a.m. (midnight) UTC.
- The crypto exchange will allow users to withdraw USD using the Advcash Wallet service in the near future.
As the week ended, the crypto market collapsed, and crypto investors started worrying about their investments. However, this bearish sentiment of the market was coupled with popular crypto exchange Bybit announcing a pause on US dollar bank transfers due to issues with its partners. It is crucial to note that the crypto community on social media platform Twitter speculated if withdrawals were affected due to the same, adding that peer-to-peer transfers (P2P) are better.
“Bybit has suspended USD deposits via bank transfer due to service outages from our partner. Effective immediately, USD deposits via Wire Transfer (SWIFT) and Wire Transfer (For US banks) are no longer available,” said the crypto platform.
According to a blog post from Bybit, investors will have the capability to deposit cash via Advcash Wallet, or buy cryptocurrencies with your credit card on our One-Click Buy page. Moreover, the exchange confirmed that withdrawals via Wire Transfer (SWIFT) and Wire Transfer (For US banks) will be available until March 10, 2023, at 12 a.m. (midnight) UTC.
For the customers who want to withdraw their USD on shorter notice, Bybit advised them to “please do so as soon as possible to avoid potential disruptions that may occur due to prevailing circumstances.” It was also revealed that the crypto exchange will allow users to withdraw USD using the Advcash Wallet service in the near future.
“Please rest assured that the USD assets you hold in Bybit are safe and secure. Our platform has undergone strict security measures to ensure the safety of all user funds,” said the crypto exchange in the blog post.
Bybit’s Exposure to Genesis
The Twitter crypto community speculated that Bybit is one of the many firms that had exposure to crypto lender Genesis Global Trading, which filed for protection from creditors under Chapter 11. Interestingly, the crypto firm loaned $2.36 billion to Three Arrows Capital (3AC), another bankrupt crypto hedge fund, as reported earlier by BitcoinWisdom.
The exposure to Genesis amounts to around $150 million, confirmed the CEO of the crypto exchange, Ben Zhou, via the firm’s investment arm, Mirana Asset Management. Moreover, close to $120 million was collateralized and had already been liquidated.
Additionally, last year in December, Bybit announced that it was cutting down its workforce by over 30% due to the decline in the price of cryptocurrencies and collapse of crypto firms. The crypto firm also released employees in June last year. Zhou stated that the collapse of the firms “tells us that we are entering into an even colder winter than we had anticipated from both industry and market perspectives.”
Moreover, the Ontario Securities Commission (OSC) imposed penalties on Bybit and another crypto exchange, KuCoin, for trading unregistered securities and derivatives. The former was asked to pay close to $1.6 million, while the latter was ordered to pay $1.8 million.