Dubai-based crypto exchange Bybit has suspended United States dollar (USD) deposits via bank transfers in response to “service outages from partners”. Funds can be withdrawn via wire transfer until March 10.
In a blog post from March 4, the crypto company said that “USD deposits via Wire Transfer (SWIFT) and Wire Transfer (For US banks) are no longer available.” As an alternative, users can continue to make USD deposits through the Advcash Wallet or by credit card.
Notice of Delay in USD Payment via Bank Transfer
You can continue to make USD deposits through the Advcash Wallet, or buy cryptocurrencies with your credit card on the One-Click Buy page.
More details here: https://t.co/Roae3T4pYJ#Bybit #TheCryptoArk pic.twitter.com/XAUI2AeDJC
– Bybit (@Bybit_Official) March 4, 2023
Withdrawals through the Advcash Wallet are scheduled to be available soon, notes the exchange. Bybit claims user funds are “safe and secure”, but urges clients who wish to withdraw USD to do so “so as to prevent disruption.”
Bybit is one of the companies with exposure to crypto lender Genesis Global Trading, which filed for Chapter 11 bankruptcy on January 20.
According to Bybit CEO Ben Zhou, the exposure is up to $150 million through the investment arm of Mirana Asset Management. A total of $120 million of the fund has been secured and has been disbursed, according to Zhou. In addition, he guarantees that all client funds go into a separate account, and that the products acquired by Bybit do not use Mirana.
The termination comes just a day after Silvergate bank announced plans to shut down its digital asset payment network, saying the termination was a “risk-based decision”. The network is one of the main on- and off-ramps for USD in the American crypto industry.
Regulatory pressure and market outflows following the dramatic collapse of cryptocurrency exchange FTX in November 2022 led US banks to reduce their exposure to cryptocurrency assets.
Last month, Binance announced that it would temporarily suspend bank transfers from US dollars. Previously, in January, the exchange said its SWIFT transfer partner, Signature Bank, would only process trades by users with USD bank accounts of more than $100,000. Bank Thanda previously announced a drastic reduction in crypto deposits.