Bybit, a Dubai-based cryptocurrency exchange, has announced that it is temporarily suspending United States dollar (USD) deposits via bank transfers in response to “service outages from a partner.” According to a blog post from March 4, USD deposits via wire transfer are no longer available, but users can still make USD deposits through the Advcash Wallet or with a credit card. Withdrawals through the Advcash Wallet are scheduled to be available soon, according to the exchange.
Bybit has reassured users that their funds are safe and secure, but is urging clients planning to withdraw USD to do so “as soon as possible to avoid potential disruptions.” The halt comes just a day after Silvergate Bank announced plans to discontinue its digital assets’ payment network, which was one of the major on- and off-ramps for USD in the American crypto industry.
Bybit is one of the companies with exposure to the crypto lender Genesis Global Trading, which filed for Chapter 11 bankruptcy on Jan. 20. According to Bybit CEO Ben Zhou, the exposure amounts to $150 million via its investment arm Mirana Asset Management. A total of $120 million of the funds were collateralized and had already been liquidated, according to Zhou. He also assured that all client funds go into separate accounts and that Bybit’s earn products do not use Mirana.
The regulatory pressure and market outflows following the dramatic collapse of the cryptocurrency exchange FTX in November 2022 are driving US banks to reduce their exposure to cryptocurrency assets. Last month, Binance announced that it would temporarily suspend bank transfers of US dollars. In January, the exchange also said that its SWIFT transfer partner, Signature Bank, would only process trades by users with USD bank accounts over $100,000. Signature Bank previously announced that it was drastically decreasing crypto deposits.
While Bybit has suspended USD deposits via bank transfer, users can still make deposits through the Advcash Wallet or with a credit card. Bybit has assured users that their funds are safe and secure, but is urging clients to withdraw USD as soon as possible to avoid potential disruptions. The halt comes amid regulatory pressure and market outflows in the wake of the collapse of FTX and the bankruptcy of Genesis Global Trading.