I’m starting to think Bybit may be heading toward bankruptcy

I’m becoming increasingly concerned that Bybit could be heading toward a bankruptcy situation.

On Trustpilot, new reviews appear to be posted roughly every two hours from users claiming that their withdrawals have been frozen or restricted.

What is particularly concerning is that the explanations from Bybit seem to be almost identical.

I have also been prohibited from making withdrawals.

CASE: 27409501
UID: 493989599

The common points among these user reports are:

• Bybit says it cannot provide a specific date for when withdrawals will be restored.
• They say the process is complicated.
• They say the Compliance Team needs additional time to resolve the issue.
• Users are left without a clear timeline for when they will regain access to their assets.

According to some of these reports, people have been unable to withdraw their own assets for a minimum of three months, with some claiming that their restrictions have lasted for more than a year.

This is extremely concerning.

There is also a regulatory question that I believe deserves attention.

Bybit operates in the UAE, where crypto exchanges are subject to the regulatory framework established by VARA.

My understanding is that when withdrawals are restricted, there are requirements regarding the communication of the reasons for those restrictions and the handling of customer funds.

Yet many users claim that Bybit is not providing them with a specific reason or a clear timeline for when their withdrawals will be restored.

What makes this even more alarming is that the explanations being given remind me of what happened with exchanges such as Mt. Gox and FTX before their collapses.

Of course, I cannot say with certainty that Bybit is going bankrupt.

However, repeated withdrawal restrictions, growing numbers of similar user complaints, and the lack of a clear timeline are serious warning signs that I believe the crypto community should be paying attention to.

If you are currently keeping your funds on Bybit, consider withdrawing your assets to a personal wallet or another exchange if you are able to do so.

Do not assume that because you were able to withdraw your funds today, you will necessarily be able to withdraw them tomorrow.

I would also like to hear from other Bybit users:

Has your withdrawal been restricted? How long have you been waiting, and what explanation did Bybit give you?

Please share your experience so we can determine how widespread this issue actually is.