Dubai-based crypto exchange Bybit has suspended US dollar (USD) deposits via wire transfers in response to “partner service outages.” Funds can be withdrawn via bank transfer until March 10.
In a March 4 blog post, the crypto company saying that “USD deposits via wire transfer (SWIFT) and wire transfer (for US banks) are no longer available.” Alternatively, users can continue to make USD deposits via Advcash Wallet or by credit card.
Notice about suspension of payments in USD by bank transfer
You can continue to make USD deposits through Advcash Wallet or buy cryptocurrencies with your credit card on our one-click purchase page.
More details here: https://t.co/Roae3T4pYJ#bybit #ElCryptoArk pic.twitter.com/XAUI2AeDJC
—Bybit (@Bybit_Official) March 4, 2023
Withdrawals via the Advcash Wallet are scheduled to be available soon, the exchange noted. Bybit claims that user funds are “safe and secure” but urges clients planning to withdraw USD to do so “as soon as possible to avoid potential disruptions.”
Bybit is one of the companies with exposure to crypto lender Genesis Global Trading, which filed for Chapter 11 bankruptcy on Jan. 20.
According to Bybit CEO Ben Zhou, the exposure amounts to $150 million through its investment arm Mirana Asset Management. A total of $120 million of the funds were guaranteed and had already been settled, according to Zhou. In addition, he assured that all client funds go into separate accounts and that Bybit’s earning products do not use Mirana.
The outage comes just one day after Silvergate bank announced plans to discontinue the payment network for its digital assets, claiming the termination is a “risk-based decision.” The network was one of the main on-ramps and off-ramps for USD in the American crypto industry.
Regulatory pressure and market exits following the dramatic collapse of cryptocurrency exchange FTX in November 2022 are prompting US banks to reduce their exposure to cryptocurrency assets.
Last month, Binance announced that it would temporarily suspend bank transfers of US dollars. Earlier in January, the exchange said that its SWIFT transfer partner, Signature Bank, would only process trades from users with USD bank accounts of more than $100,000. Signature Bank previously announced that it was slashing crypto deposits.
