Bybit

Last updated

Bybit Fintech Limited
Bybit Logo.svg
Type Cryptocurrency exchange
Location Dubai, United Arab Emirates
Founded2018;7 years ago (2018)
Key peopleBen Zhou (CEO)
Website bybit.com

Bybit Fintech Limited, branded Bybit, is a cryptocurrency exchange based in Dubai, the United Arab Emirates. [1] [2] Founded in 2018 by Ben Zhou, it is the world's second largest cryptocurrency exchange. [3]

Contents

In February 2025, the exchange was hacked resulting in the loss of $1.5 billion in assets in the largest cryptocurrency theft on record. [4]

History

ByBit was founded in 2018 by Ben Zhou, an entrepreneur from Singapore, who currently serves as CEO. [2] [5]

In 2022, Bybit relocated its headquarters from Singapore to Dubai, United Arab Emirates. [6] [7]

In November 2023, the FTX bankruptcy estate sued Bybit for nearly $1 billion. [8] It alleged that Bybit's investment arm Mirana prioritized withdrawals from FTX in November 2022 amid solvency concerns and withdrew nearly $500 million before withdrawals stopped. [8] The suit claimed that Bybit used FTX assets to expedite withdrawals, blocked FTX from reclaiming $125 million, and devalued tokens worth tens of millions through BitDAO. [8] FTX also contended that a token swap with Alameda in October 2021 was reversed in May 2023 when BitDAO restructured tokens, limiting redemption rights. [8] In October 2024, Bybit settled its FTX case by paying $228 million. [9] [10]

2025 hack

On February 21, 2025, Bybit announced that it had been hacked. [11] The value of the stolen cryptocurrency, which amounted to 400,000 Ethereum, [12] has been estimated at $1.5 billion, which would make it the largest cryptocurrency exchange hack to date. [11] The firm reported that it was able to replenish its reserves within 72 hours by securing 447,000 ether tokens in emergency funding. [13] The liquidity was provided by firms including Galaxy Digital, FalconX and Wintermute. [13]

Blockchain analytics firms Arkham Intelligence and Elliptic claimed they were able to trace the hack to Lazarus Group, an advanced persistent threat tied to North Korea. [12] The US Federal Bureau of Investigation also attributed the hack to North Korea, blaming "TraderTraitor actors". [14]

Sponsorships

In August 2021, Bybit sponsored Ukrainian esports organization Natus Vincere (NAVI) in a three-year deal, becoming its official crypto platform partner with its logo on jerseys. [15] Soon after, Bybit signed a similar three-year agreement with Danish esports club Astralis featuring its branding on uniforms. [16] [17]

In November 2021, Bybit became the main sponsor of the Argentina national football team through a two-year deal with the Argentine Football Association (AFA), with its logo on training apparel ahead of the 2022 FIFA World Cup. [18] [19]

In early 2022, Bybit entered Formula 1 as a sponsor of the Oracle Red Bull Racing team with a multi-year partnership, reportedly worth $150 million over three years. [20] The sponsorship ran through the 2022 to 2023 seasons and concluded at the end of 2024 by mutual agreement. [21] [22]

Canada

In 2021, the Ontario Securities Commission (OSC) targeted unregistered crypto exchanges. Bybit was found offering trading services to Ontario residents without registration. After cooperating with the OSC, Bybit reached a settlement in June 2022, paying about CAD 2.5 million in disgorged revenue and investigative costs, and agreeing to halt new account openings and product offerings in Ontario. [23] [24]

Japan

Bybit has faced regulatory action from the Financial Services Agency (FSA) for operating without proper registration. In May 2021, the FSA warned Bybit for allowing Japanese residents to trade despite the platform not being licensed in Japan and instructed it to comply with local regulations. [25] In April 2023, the FSA issued another public warning regarding unregistered crypto trading activities targeting Japanese users. In February 2025, the FSA blocked Bybit from the App Store and Google Play. [26]

United Kingdom

In March 2021, Bybit ceased serving users in the United Kingdom (UK) in response to the Financial Conduct Authority's (FCA) ban on retail cryptocurrency derivatives, which took effect on January 6, 2021. [27]

United States

As of 2021, Bybit was blocked from operating in the United States. [28]

References

  1. ↑ "Crypto Exchange Bybit Moves Headquarters to Dubai From Singapore". Bloomberg.
  2. 1 2 "Cryptocurrency theft of £1.1bn could be biggest ever, says Bybit". www.bbc.com. February 22, 2025.
  3. ↑ https://www.bloomberg.com/news/articles/2024-06-25/bybit-is-now-the-world-s-second-largest-crypto-exchange
  4. ↑ Bambysheva, Nina. "Argentina's $4.6 Billion Crypto Scandal; Largest-Ever Crypto Theft". Forbes. Retrieved February 25, 2025.
  5. ↑ "Ben Zhou: Latest Articles, Analysis and Profile". South China Morning Post. Retrieved February 23, 2025.
  6. ↑ "UAE crypto push sees Bybit, Crypto.com announce Dubai offices". Reuters .
  7. ↑ "Crypto exchange Bybit to move HQ to Dubai from Singapore". Arab News.
  8. 1 2 3 4 Schwartz, Leo. "FTX claims Bybit, one of world's largest crypto exchanges, used VIP status to pull hundreds of millions of dollars during collapse". Fortune Crypto.
  9. ↑ "FTX Settles Suit Against Crypto Firm Bybit for $228 Million".
  10. ↑ "FTX Settles Legal Dispute with Bybit for $228 Million". Lawyer Monthly.
  11. 1 2 Yaffe-Bellany, David (February 22, 2025). "Big Day for Crypto Goes South After Bybit Hack". The New York Times– via NYTimes.com.
  12. 1 2 "North Korean hackers suspected of being behind record US$1.5 billion hack of crypto exchange Bybit". CNA.
  13. 1 2 Sigalos, MacKenzie (February 24, 2025). "Crypto exchange Bybit says it fully replenished reserves after record $1.5 billion hack". CNBC. Retrieved February 25, 2025.
  14. ↑ https://www.theguardian.com/world/2025/feb/27/north-korea-bybit-crypto-exchange-hack-fbi
  15. ↑ Nicholson, Jonno (August 18, 2021). "NAVI unveils Bybit as cryptocurrency partner".
  16. ↑ Daniels, Tom (August 23, 2021). "Astralis agrees three-year deal with cryptocurrency platform Bybit".
  17. ↑ Gernigon, Frederik (August 23, 2021). "Dansk storhold indgår historisk sponsoraftale". www.bt.dk.
  18. ↑ Sale, Jessie (November 18, 2021). "AFA adds Bybit brand to national team's kit - Insider Sport".
  19. ↑ "Casación Penal confirmó el cierre de una causa contra la AFA y rechazó que una empresa sponsor de la selección fuese querellante". infobae. June 22, 2024.
  20. ↑ https://www.bloomberg.com/news/articles/2022-02-16/red-bull-formula-one-team-signs-cryptocurrency-sponsor
  21. ↑ "Red Bull sign partnership deal with cryptocurrency exchange Bybit". Reuters .
  22. ↑ Saleh, Tariq (January 3, 2025). "Red Bull Racing loses major sponsor Bybit". Sportcal. Retrieved February 25, 2025.
  23. ↑ Bhardwaj, Shashank. "Bybit signs a settlement agreement with Ontario Trading commission". Forbes .
  24. ↑ "OSC holds global crypto asset trading platforms accountable".
  25. ↑ "FSA publishes Weekly Review No.443".
  26. ↑ Qureshi, Mehab (February 7, 2025). "Japan blocks major crypto exchanges from App Store and Google Play". TheStreet .
  27. ↑ Erazo, Felipe (May 31, 2021). "FSA Warns of Bybit Operating Unregistered Crypto Services in Japan". Finance Magnates. Archived from the original on December 3, 2024. Retrieved February 24, 2025.
  28. ↑ Osipovich, Alexander (July 30, 2021). "U.S. Crypto Traders Evade Offshore Exchange Bans". Wall Street Journal.
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