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Crypto News

Bybit Takes Steps To Protect Users, Suspends USD SWIFT and Wire Transfers

Author

Jay Solano

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Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

bybit

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Bybit has announced the suspension of USD transfers, joining the increasing number of exchanges taking the same action.

Bybit Follows Suit With Other exchanges, Halts USD Deposits

In a recent announcement, Bybit stated that USD deposits made via SWIFT and Wire Transfer (for U.S. institutions) would no longer be possible due to “service outages from a partner.” The updated rules will go into effect on March 10, 2023.

Users can still make deposits in USD using their credit cards or the Advcash Wallet. The Advcash option would soon be accessible, according to the exchange.

Bybit reassured its clients that their assets were secure and protected but recommended those who planned to withdraw USD to act swiftly to prevent potential problems.

Ben Zhou, the chief executive officer of Bybit, stated that the exposure is up to $150 million via Mirana Asset Management, its investment arm. He noted that $120 million of the funds had been liquidated and collateralized.

In addition, customer assets are held in separate accounts, and Bybit earn products do not utilize the investment arm.

Major Crypto Exchanges Suspend USD Transfers

The Bybit suspension coincides with Silvergate‘s decision to cease its digital assets’ payment network, citing risk as the reason. After FTX’s collapse in November 2022, regulatory pressure and market outflows are tremendous. As such, U.S. banks are limiting their exposure to crypto-assets.

Binance suspended all withdrawals and deposits from USD bank accounts on February 8. The exchange did not provide an explanation for the suspension and simply stated that 0.01 percent of their customers were affected.

Crypto.com halted USD payments through Silvergate on March 2. The move prompted corporations such as Galaxy, Paxos, and Circle to suspend operations, with the bank citing precautionary measures.

The exchange assured the safety of funds, which also stated that bank transfers would be carried out as a precautionary measure.