Bybit Exchange Faced a Net Outflow of $50 Million Worth of Crypto Assets

The panic among Bybit customers caused outflows of $50 million in funds from the Bybit platform. Bybit is an averagely popular cryptocurrency exchange founded in 2018.

Bybit customers panicked and withdrew $50 million from the platform after a proof-of-reserve (PoR) graph from Arkham Intelligence showed a steep decline.

However, some crypto enthusiasts pointed out that the graph was likely displaying incorrect data, as checking Bybit’s wallets individually showed no issue with the exchange’s actual reserved funds.

“There is a bug in the @ArkhamIntel proof of reserves graph that is likely causing the rumor,” one user tweeted. “If u check their wallets individually u can easily prove the graph is broken.”

Bybit customers panicked and withdrew $50 million from the platform after a proof-of-reserve (PoR) graph from Arkham Intelligence showed a steep decline.

However, some crypto enthusiasts pointed out that the graph was likely displaying incorrect data, as checking Bybit’s wallets individually showed no issue with the exchange’s actual reserved funds.

“There is a bug in the @ArkhamIntel proof of reserves graph that is likely causing the rumor,” one user tweeted. “If u check their wallets individually u can easily prove the graph is broken.”

The incident follows a wave of insolvencies in the crypto industry, which has seen several major projects and firms collapse in recent times. Notably, the insolvencies of crypto lending platforms and the second-largest exchange, FTX, in late 2022 have left a lasting impact on the market.

As a result, any negative news surrounding a crypto firm tends to trigger immediate waves of fear among crypto investors.