Bybit, a cryptocurrency exchange base in Dubai, has halted deposits in United States dollars via bank transfers due to “service outages from a partner.” The suspension is effective immediately and will remain in place until March 10. As an alternative,crypto users can deposit USD through the Advcash Wallet or with a credit card. However, withdrawals through the Advcash Wallet will be available soon. Bybit announced that users funds are safe and secure, but it urges those planning to withdraw USD to do so as soon as possible to avoid potential disruptions.
The decision by Bybit to halt USD bank transfers was announced shortly after Silvergate Bank’s announcement that it would discontinue its digital assets’ payment network due to risk concerns. Silvergate’s network was a crucial on- and off-ramp for USD in the US crypto industry. The move is part of a wider trend of US banks reducing their exposure to cryptocurrency assets due to regulatory pressure and market outflows, which have intensified after the dramatic collapse of cryptocurrency exchange FTX in November 2022.
Bybit CEO Ben Zhou Statement
The exchange claims users’ funds are safe but urges clients to withdraw USD as soon as possible to avoid potential disruptions. Bybit also has exposure to crypto lender Genesis Global Trading, which filed for Chapter 11 bankruptcy in January. Bybit CEO Ben Zhou said the exposure amounts to $150 million, with $120 million already collateralized and liquidated. Regulatory pressure and market outflows are driving US banks to reduce their exposure to crypto assets.