Bybit
{{Use mdy dates|date=February 2025}}
{{Short description|Dubai-based cryptocurrency exchange}}
{{Infobox exchange
| name = Bybit Fintech Limited
| logo = Bybit Logo.svg
| founded = {{start date and age|2018}}
| type = Cryptocurrency exchange
| city = Dubai
| country = United Arab Emirates
| key_people = Ben Zhou (CEO)
| owner =
| homepage = {{URL|bybit.com}}
}}
Bybit Fintech Limited, branded Bybit, is a cryptocurrency exchange based in Dubai, the United Arab Emirates.{{Cite web|url=https://www.bloomberg.com/news/articles/2022-03-29/crypto-com-bybit-announce-plans-to-set-up-operations-in-dubai|title=Crypto Exchange Bybit Moves Headquarters to Dubai From Singapore|work=Bloomberg }}{{Cite web |url=https://www.bbc.com/news/articles/cx2844nvwx8o |title=Cryptocurrency theft of £1.1bn could be biggest ever, says Bybit|date=February 22, 2025|website=www.bbc.com}} Founded in 2018 by Ben Zhou, it is the world's second largest cryptocurrency exchange.{{Cite web |last=Taubman |first=Benjamin |date=2024-06-25 |title=Bybit Is Now the World’s Second-Largest Crypto Exchange |url=https://www.bloomberg.com/news/articles/2024-06-25/bybit-is-now-the-world-s-second-largest-crypto-exchange |access-date=2025-03-29 |website=Bloomberg}}
In February 2025, the exchange was hacked resulting in the loss of $1.5 billion in assets in the largest cryptocurrency theft on record.
History
Bybit was founded in 2018 by Ben Zhou, an entrepreneur from Singapore, who currently serves as CEO.{{Cite web |title=Ben Zhou: Latest Articles, Analysis and Profile |url=https://www.scmp.com/author/ben-zhou |access-date=2025-02-23 |website=South China Morning Post |language=en}}
In 2022, Bybit relocated its headquarters from Singapore to Dubai, United Arab Emirates.{{Cite web|url=https://www.reuters.com/business/finance/uae-crypto-push-sees-bybit-cryptocom-announce-dubai-offices-2022-03-28/|title=UAE crypto push sees Bybit, Crypto.com announce Dubai offices|website=Reuters }}{{Cite web|url=https://www.arabnews.com/node/2052961/page_action/aggregate|title=Crypto exchange Bybit to move HQ to Dubai from Singapore|website=Arab News}}
In November 2023, the FTX bankruptcy estate sued Bybit for nearly $1 billion.{{Cite web|url=https://fortune.com/crypto/2023/11/11/ftx-bybit-bankruptcy-lawsuit-vip-crypto-exchange/|title=FTX claims Bybit, one of world's largest crypto exchanges, used VIP status to pull hundreds of millions of dollars during collapse|first=Leo|last=Schwartz|website=Fortune Crypto}} 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. 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. FTX also contended that a token swap with Alameda Research in October 2021 was reversed in May 2023 when BitDAO restructured tokens, limiting redemption rights. In October 2024, Bybit settled its FTX case by paying $228 million.{{Cite web|url=https://news.bloomberglaw.com/bankruptcy-law/ftx-settles-suit-against-crypto-firm-bybit-for-228-million|title=FTX Settles Suit Against Crypto Firm Bybit for $228 Million|date=October 25, 2024 }}{{Cite web|url=https://www.lawyer-monthly.com/2024/10/ftx-settles-legal-dispute-with-bybit-for-228-million/|title=FTX Settles Legal Dispute with Bybit for $228 Million|website=Lawyer Monthly}}
= 2025 hack =
On February 21, 2025, Bybit announced on X that it had been hacked.{{Cite web |last=Yaffe-Bellany |first=David |date=February 22, 2025 |title=Big Day for Crypto Goes South After Bybit Hack |url=https://www.nytimes.com/2025/02/22/technology/crypto-exchange-bybit-hack.html |work=The New York Times |via=}} According to Bybit, about 400,000 Ethereum was stolen,{{Cite web |last=Franceschi-Bicchierai |first=Lorenzo |date=2025-02-21 |title=Crypto exchange Bybit says it was hacked and lost around $1.4B |url=https://techcrunch.com/2025/02/21/crypto-exchange-bybit-says-it-was-hacked-and-lost-around-1-4-billion/ |access-date=2025-03-29 |website=TechCrunch |language=en-US}}{{Cite web|url=https://www.channelnewsasia.com/east-asia/north-korean-hackers-suspected-being-behind-record-us15-billion-hack-crypto-exchange-bybit-4954531|title=North Korean hackers suspected of being behind record US$1.5 billion hack of crypto exchange Bybit|website=CNA}} which had an approximate notional value of $1.4 billion, making it the largest cryptocurrency exchange hack to date. The firm reported that it was able to replenish its reserves within 72 hours by securing 447,000 ether tokens in emergency funding.{{Cite web |last=Sigalos |first=MacKenzie |date=2025-02-24 |title=Crypto exchange Bybit says it fully replenished reserves after record $1.5 billion hack |url=https://www.cnbc.com/2025/02/24/bybit-replenished-reserves-after-record-breaking-1point5-billion-hack.html |access-date=2025-02-25 |website=CNBC |language=en}} The liquidity was provided by firms including Galaxy Digital, FalconX and Wintermute.
The attacker exploited vulnerabilities in Bybit's multi-signature wallet system, facilitated by compromised infrastructure at Safe{Wallet}, a third-party provider.{{Cite web |title=Lazarus hacked Bybit via breached Safe{Wallet} developer machine |url=https://www.bleepingcomputer.com/news/security/lazarus-hacked-bybit-via-breached-safe-wallet-developer-machine/ |access-date=2025-03-29 |website=BleepingComputer |language=en-us}}
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.{{Cite web |last=Research |first=Elliptic |title=The largest theft in history - following the money trail from the Bybit Hack |url=https://www.elliptic.co/blog/bybit-hack-largest-in-history |access-date=2025-03-29 |website=Elliptic |language=en}} The US Federal Bureau of Investigation also attributed the hack to North Korea, blaming "TraderTraitor actors".{{cite web | url=https://www.theguardian.com/world/2025/feb/27/north-korea-bybit-crypto-exchange-hack-fbi | title=North Korea behind $1.5bn hack of crypto exchange ByBit, says FBI | work=The Guardian | last1=McCurry | first1=Justin }}{{Cite web |title=Internet Crime Complaint Center (IC3) {{!}} North Korea Responsible for $1.5 Billion Bybit Hack |url=https://www.ic3.gov/PSA/2025/PSA250226 |access-date=2025-03-29 |website=Federal Bureau of Investigation}}
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.{{Cite web|url=https://esportsinsider.com/2021/08/navi-bybit-partnership|title=NAVI unveils Bybit as cryptocurrency partner|first=Jonno|last=Nicholson|date=August 18, 2021}} Soon after, Bybit signed a similar three-year agreement with Danish esports club Astralis featuring its branding on uniforms.{{Cite web|url=https://esportsinsider.com/2021/08/astralis-agrees-three-year-deal-with-cryptocurrency-platform-bybit|title=Astralis agrees three-year deal with cryptocurrency platform Bybit|first=Tom|last=Daniels|date=August 23, 2021}}{{Cite web|url=https://www.bt.dk/e-sport/dansk-storhold-indgar-historisk-sponsoraftale|title=Dansk storhold indgår historisk sponsoraftale|first=Frederik|last=Gernigon|date=August 23, 2021|website=www.bt.dk}}
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.{{Cite web|url=https://insidersport.com/2021/11/18/afa-adds-bybit-brand-to-national-teams-kit/|title=AFA adds Bybit brand to national team's kit - Insider Sport|first=Jessie|last=Sale|date=November 18, 2021}}{{Cite web|url=https://www.infobae.com/judiciales/2024/06/22/casacion-penal-confirmo-el-cierre-de-una-causa-contra-la-afa-y-rechazo-que-una-empresa-sponsor-de-la-seleccion-fuese-querellante/|title=Casación Penal confirmó el cierre de una causa contra la AFA y rechazó que una empresa sponsor de la selección fuese querellante|date=June 22, 2024|website=infobae}}
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.{{Cite news |date=16 February 2022 |title=Red Bull Formula One Team Signs Cryptocurrency Sponsor |url=https://www.bloomberg.com/news/articles/2022-02-16/red-bull-formula-one-team-signs-cryptocurrency-sponsor |access-date=2025-05-17 |work=Bloomberg News}} The sponsorship ran through the 2022 to 2023 seasons and concluded at the end of 2024 by mutual agreement.{{Cite web|url=https://www.reuters.com/lifestyle/sports/red-bull-sign-partnership-deal-with-cryptocurrency-exchange-bybit-2022-02-16/ |title=Red Bull sign partnership deal with cryptocurrency exchange Bybit |website=Reuters}}{{Cite web |last=Saleh |first=Tariq |date=2025-01-03 |title=Red Bull Racing loses major sponsor Bybit |url=https://www.sportcal.com/news/red-bull-racing-loses-major-sponsor-bybit/ |access-date=2025-02-25 |website=Sportcal |language=en-US}}
Legal status
= 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.{{Cite web|url=https://www.osc.ca/en/news-events/news/osc-holds-global-crypto-asset-trading-platforms-accountable |title=OSC holds global crypto asset trading platforms accountable}}
= India =
Bybit was fined 9.27 crore rupees (approximately $1.06 million) by India's Financial Intelligence Unit (FIU). The penalty was imposed for violations of the Prevention of Money Laundering Act (PMLA), according to official documents released on January 31, 2023.{{Cite web |date=2025-02-03 |title=ByBit Crypto Exchange Hit With Rs. 9 Crore Fine Over PMLA Violations |url=https://www.gadgets360.com/cryptocurrency/news/fiu-india-penalty-rs-9-crore-bybit-crypto-exchange-pmla-violations-7625523 |access-date=2025-03-10 |website=Gadgets 360 |language=en}}In Feb 2025, the exchange paid the fine and secured registration with the Indian FIU.{{Cite web |date=2025-02-07 |title=ByBit Pays Rs. 9.27 Crore Penalty, Completes FIU-IND Registration |url=https://www.gadgets360.com/cryptocurrency/news/bybit-pays-rs-9-crore-penalty-india-fiu-ind-registration-7656422 |access-date=2025-03-10 |website=Gadgets 360 |language=en}}
= 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.{{cite web | url=https://www.fsa.go.jp/en/newsletter/weekly2021/443.html | title=FSA publishes Weekly Review No.443 }} 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 in Japan.{{Cite web|url=https://www.thestreet.com/crypto/policy/japan-blocks-major-crypto-exchanges-from-app-store-and-google-play|title=Japan blocks major crypto exchanges from App Store and Google Play|first=Mehab|last=Qureshi|date=February 7, 2025|website=TheStreet}}
= 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.{{cite web |last1=Erazo |first1=Felipe |title=FSA Warns of Bybit Operating Unregistered Crypto Services in Japan |url=https://www.financemagnates.com/cryptocurrency/regulation/fsa-warns-of-bybit-operating-unregistered-crypto-services-in-japan/ |website=Finance Magnates |access-date=February 24, 2025 |archive-url=https://web.archive.org/web/20241203014644/https://www.financemagnates.com/cryptocurrency/regulation/fsa-warns-of-bybit-operating-unregistered-crypto-services-in-japan/ |archive-date=December 3, 2024 |date=May 31, 2021 |url-status=live}}
= United States =
{{as of|2021}}, Bybit was blocked from operating in the United States.{{Cite news |last=Osipovich |first=Alexander |date=July 30, 2021 |title=U.S. Crypto Traders Evade Offshore Exchange Bans |url=https://www.wsj.com/articles/u-s-crypto-traders-evade-offshore-exchange-bans-11627637401 |newspaper=Wall Street Journal}}
References
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{{Cryptocurrency exchanges}}
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Category:2018 establishments in the United Arab Emirates
Category:Cryptocurrency exchanges
Category:Companies based in Dubai