Ben Zhou, the CEO of Bybit, recently tackled escalating speculations regarding the exchange's financial stability and alleged hacking incidents in a public statement. These rumors gained momentum with the emergence of memes resembling FTX-related posts, implying Bybit's financial insecurity.

The reaction to these rumors varied, with some users finding humor in the situation and considering withdrawing their funds, while others expressed genuine concern and sought clarification. One theory suggested that a glitch in Arkham Intelligence's proof-of-reserves graph might have fueled the rumors, indicating rapid fund depletion from Bybit's wallets. However, closer examination revealed the funds remained intact.

Bybit swiftly debunked all allegations a day after their circulation, with Zhou issuing an official statement on May 23, refuting the rumors and emphasizing the absence of factual basis. To bolster his assertion, Zhou provided a link to Bybit's proof of reserves and a Nansen dashboard, illustrating the exchange's wallet holdings.

The proof of reserves confirmed that Bybit's assets surpassed user deposits by 100%, ensuring ample liquidity for withdrawals. Additionally, the Nansen dashboard displayed over $11 billion worth of crypto assets across Bybit's wallets. However, it's important to note that these figures don't offer a comprehensive overview of Bybit's actual assets or reserves.

In addition to financial solvency concerns, Bybit encountered regulatory challenges in May. On May 16, France's securities regulator, Autorité des Marchés Financiers, warned investors that Bybit wasn't registered as a digital asset provider in the country and could face restrictions on its operations.