Bybit, the Dubai-based cryptocurrency exchange, has banned bank transfer deposits of United States dollars (USD) due to service disruptions from a partner. Wire transfer payment method is available only by March 10th. The cryptocurrency company stated in a blog post that USD deposits via Wire Transfer (SWIFT) and Wire Transfer (For US bank) are no longer valid from March 4. Users can also continue to deposit USD using their credit cards or the Advcash Wallet as an alternative. The suspension comes just one day after Silvergate bank announced plans to stop operating its payment network for digital assets, citing a “risk-based decision” as the reason for the action. Wire Transfer is one of the main on- and off-ramps for USD in the American crypto industry.
The Bybit exchange announced that Advcash Wallet withdrawals would soon be available. Although Bybit insists that users’ monies are “safe and secure,” it advises those who intend to withdraw USD using Wire Transfer to do it “as soon as possible to minimize potential inconveniences.”
The bankruptcy of one of Bybit’s partners
Bybit is one of the companies that have partnerships with the cryptocurrency lender Genesis Global Trading, which declared bankruptcy under Chapter 11 on January 20, is Bybit. The exposure totals $150 million, according to Ben Zhou, CEO of Bybit’s investment arm Mirana Asset Management. According to Zhou, the firm has already liquidated a total of $120 million of the money. Additionally, he reaffirmed that Bybit’s earn products do not use Mirana and that all client monies are in separate accounts.
Related news
the legal organizations such as SEC are forcing U.S. institutions to lessen their exposure to crypto assets due to regulatory pressure and market withdrawals following the abrupt collapse of the cryptocurrency exchange FTX in November 2022. Binance stated last month that it will temporarily stop accepting bank transfers of USD. The exchange had previously stated in January that In January, the exchange had previously stated 100,000 would be permitted to execute trades using its SWIFT transfer partner, Signature Bank. Prior to this, Signature Bank indicated it would substantially reduce cryptocurrency deposits.
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