Partners’ outages block Bybit’s USD bank transactions

Bybit says that user money is “safe and secure,” but to avoid problems, users should withdraw USD “quickly.” 

Due to “service disruptions from a partner,” the Dubai-based cryptocurrency exchange Bybit has stopped letting people deposit USD through bank transfers.

Until March 10, funds may be withdrawn by wire transfer.

In a recent blog post, the cryptocurrency company announced that “USD deposits through wire transfer (SWIFT) and wire transfer (for US banks) are no longer accessible.”

Users may continue to make USD deposits using the Advcash Wallet or by credit card.

The exchange said that Advcash Wallet withdrawals are expected to be accessible shortly.

Bybit asserts that user money is “safe and secure,” but advises customers who want to withdraw USD to do so “immediately” to prevent any inconveniences.

Bybit is one of the firms having exposure to Genesis Global Trading, a cryptocurrency lender that filed for Chapter 11 bankruptcy on January 20.

The exposure, according to Bybit CEO Ben Zhou, is $150 million through its investment arm Mirana Asset Management.

According to Zhou, a total of $120 million of the money had been collateralized and liquidated.

In addition, he confirmed that all client monies are kept in separate accounts and that Bybit’s earn products do not use Mirana.

The stoppage occurs only one day after Silvergate Bank revealed its intentions to end its digital assets’ payment network, citing a “risk-based decision” for the termination.

The network was one of the most important entry and exit points for USD in the US cryptocurrency market.

With the spectacular collapse of cryptocurrency exchange FTX in November 2022, regulatory pressure and market outflows are pushing U.S. institutions to decrease their exposure to cryptocurrency assets.

Binance stated last month that it will temporarily block US dollar bank transactions.

Originally, in January, the exchange said that its SWIFT transfer partner, Signature Bank, would only execute transactions for USD bank accounts with a minimum balance of $100,000.

Signature Bank previously said it will significantly reduce cryptocurrency deposits.