WikiBit Exchange Exit Risk Rankings #52: Bybit — Only 5.3% of the $1.5 Billion Hack Recovered, Yet Its PoR Reserve Ratio Still Stands at 104%

Introduction: The World's No. 2 Exchange — Perfect on Paper, Vulnerable in Practice

In our first 51 installments, we've investigated a range of exchanges, from HashKey to Bitget. For Episode 52, we're turning our attention to a name that cannot be ignored: Bybit.

On paper, Bybit's numbers are among the most impressive in the crypto industry. It was once the world's second-largest cryptocurrency exchange, with more than 80 million users, average daily trading volume exceeding $18 billion, and the world's third-largest derivatives market, recording $1.49 trillion in trading volume in Q1 2026. It has published 40 consecutive Proof of Reserves (PoR) reports, covering 50 tokens and $19.6 billion in assets. Its reserve ratios stand at 104% for BTC, 103% for ETH, and 110% for USDT.

Judging by these static metrics alone, Bybit looks like an industry giant that is simply too big to fail.

But there's another side to the story.

In February 2025, North Korean hackers stole approximately $1.5 billion from Bybit in what was then the largest single hacking incident in crypto history—surpassed only by Binance's reported $6.3 billion theft today. The FBI identified North Korea's Lazarus Group as the culprit and dubbed the operation TraderTraitor. Nearly two years later, the total amount recovered or frozen by Bybit stands at approximately $78.9 million, just 5.3% of the initial loss.

Meanwhile, 51% of the 7,726 reviews on Trustpilot give Bybit a one-star rating. Some users claim their withdrawals have been frozen for months or even more than a year, prompting concerns about whether Bybit could be heading toward financial trouble.

An exchange with a 104% PoR reserve ratio. An exchange that recovered just 5% of the funds stolen in a $1.5 billion hack. An exchange whose users claim they have waited months for withdrawals without receiving a clear resolution date.

Let's examine the evidence, one layer at a time.

1. Regulatory Compliance: Its MiCA License Is Real, but So Are the Markets It Has Been Forced to Leave

Bybit's actual licenses: Legitimate, but they don't cover every major market

Bybit has made genuine progress in regulatory compliance. Its official website lists regulatory credentials and registrations associated with MiCA, FIU, and SCA, among others. In the European Economic Area (EEA), an Austrian entity has obtained authorization as a Crypto-Asset Service Provider (CASP) under the Markets in Crypto-Assets Regulation (MiCA), allowing it to provide services across 30 EEA countries. In the United Arab Emirates, Bybit operates within the regulatory framework established by the Virtual Assets Regulatory Authority (VARA).

These authorizations are real. Bybit's European entity has indeed obtained authorization under the MiCA framework, a significant distinction from exchanges such as Bitget that lack MiCA CASP authorization.

Singapore's MAS says: You're not on our licensed list

On June 17, 2026, the Monetary Authority of Singapore (MAS) added Bybit and its operating entity, Bybit Fintech Limited, to its Investor Alert List. MAS did not disclose a specific reason for the listing, but publicly available information indicates that Bybit does not hold an MAS license. Singapore is also listed as a restricted jurisdiction on Bybit's website.

In other words, Bybit's founder, Ben Zhou, is a Singaporean entrepreneur, and the brand has long had strong associations with Singapore. Yet Singapore's financial regulator has made clear that Bybit is not on its list of licensed entities.

Japan's FSA: Three warnings, followed by an effective expulsion

Japan's Financial Services Agency (FSA) issued formal warnings to Bybit and its operating entity, Bybit Fintech Limited, in May 2021, March 2023, and November 2024. The regulator determined that the platform had solicited Japanese residents to trade crypto assets online without registering as a crypto-asset exchange service provider.

In February 2025, Japan began taking more aggressive technical measures against unregistered platforms. These measures included working with Apple and Google to remove the apps of several platforms, including Bybit.

Bybit was ultimately forced to scale back its operations. It notified users that its Japanese services would enter a phased restriction and suspension process beginning January 22, 2026. Even users who had not voluntarily closed their accounts could face service restrictions through identity-verification controls and strict IP blocking.

In October 2026, Japan's FSA updated its warning list, again including Bybit in its historical record of regulatory violations.

A platform that once ranked as the world's second-largest crypto exchange has effectively been pushed out of the Japanese market.

South Korea: App removed, FIU registration still outstanding

Beginning January 28, 2026, Google Play in South Korea started removing apps from overseas exchanges that had not completed Virtual Asset Service Provider (VASP) registration with the country's Financial Intelligence Unit (FIU). Bybit's app was officially removed on July 10, 2026.

Bybit has yet to complete FIU registration in South Korea. Any decision concerning restrictions on access to its website is handled separately by the Korea Communications Standards Commission.

Where is Bybit actually based: Dubai, Singapore, or somewhere else？

Bybit's operating structure and regulatory relationships are not as straightforward as those of exchanges such as HashKey or Bitstamp, where the relevant legal entity may be easier to identify.

Bybit's global headquarters is currently in Dubai, and the company has actively pursued compliance with the regulatory requirements of the UAE's Virtual Assets Regulatory Authority (VARA).

In Europe, it operates through an Austrian entity authorized under MiCA. In Japan and South Korea, it has faced effective market exclusion. In Singapore, it has been placed on the investor alert list.

For users accessing Bybit from different jurisdictions, the applicable legal protections and the regulator to which they can submit complaints may depend on their location and the legal entity associated with their accounts. That information is not always sufficiently transparent to ordinary users.

Risk Rating: Medium Risk (Regulatory Compliance)

Bybit's MiCA and VARA authorizations are genuine, distinguishing it from exchanges that lack MiCA CASP authorization.

However, its inclusion on Singapore's MAS Investor Alert List, three warnings from Japan's FSA followed by its effective exclusion from the Japanese market, and the removal of its app in South Korea all point to a clear concern: in several key Asian markets, Bybit's regulatory status is restricted or unauthorized rather than fully licensed.

A global giant with the scale of the world's second-largest exchange operates within a fragmented regulatory landscape, with its compliance status varying significantly from one jurisdiction to another.

2. Account Security and Withdrawals: A 5.3% Recovery Rate After the $1.5 Billion Hack, and Withdrawal Freeze Complaints Every Two Hours

February 2025: $1.5 Billion Stolen in the Largest Crypto Hack in History at the Time

On February 21, 2025, Bybit suffered a devastating cold-wallet exploit. Hackers stole approximately 401,000 ETH, worth between $1.46 billion and $1.5 billion at the time. The incident set a record as the largest single crypto theft in the industry's 15-year history, a record that stood until Binance was hit by a $6.36 billion black-swan attack in late October 2026.

On February 26, the FBI confirmed that the attack was carried out by North Korea's Lazarus Group, under an operation it dubbed TraderTraitor.

Recovery figures: According to disclosures Bybit made when it sued North Korea over the incident, approximately $48.4 million in stolen assets had been recovered, while another $30.5 million had been frozen across more than 28 exchanges and custodial service providers. The combined total was approximately $78.9 million, representing just 5.3% of the initial loss.

What does this mean？ Nearly two years after $1.5 billion was stolen, 94.7% of the funds had still not been recovered.

On-chain investigator ZachXBT invested nearly 350,000 USDC in undercover investigations, helping freeze some of the stolen funds. Yet the overall recovery rate remained extremely low. Bybit filed a civil lawsuit against North Korea and obtained a preliminary asset-freezing order, but enforcing a recovery claim against a hacking organization linked to a sovereign state is an entirely different challenge. In practical terms, the legal avenues for recovering the funds offer little assurance of meaningful restitution.

The company's response: Bybit CEO Ben Zhou appeared publicly just three days after the incident, explaining what had happened and pledging to rebuild the platform's security infrastructure.

Bybit subsequently spent nearly eight months rebuilding its cold-wallet system to meet bank-grade security standards. The new architecture incorporated hardware security modules (HSMs), an independent application layer, physical vaults, network isolation, multiple monitoring systems, and multi-party authorization mechanisms.

This was a serious effort to rebuild its security infrastructure, and that deserves objective recognition.

“My Withdrawals Are Frozen, and There's No Definite Date”: The Everyday Struggle

If the $1.5 billion hack represented a security breakdown at the platform level, the complaints on Trustpilot reflect a different problem: individual users being unable to access their own funds.

On October 25, 2026, one user complained that their account had been frozen and withdrawals blocked. According to the complaint, Bybit had provided “no specific reason,” requested no supporting documents, and offered no explanation of the applicable jurisdiction or the legal entity operating the account. Customer support reportedly responded only with generic, copy-and-paste messages.

The user was given a tentative review completion date of November 30, with their funds inaccessible until then. The user said they were preparing legal action and had filed a formal complaint with the Seychelles Financial Services Authority (FSA).

On October 30, 2026, another user reported attempting to withdraw just $19 to pay for an AI service. The result, according to the complaint, was a freeze on withdrawals across the entire account, leaving more than $20,000 inaccessible. The restriction had reportedly been in place since October 17, lasting two weeks by the time of the complaint.

In an analysis published in September 2026, CoinSpectator wrote that Trustpilot was receiving “approximately one new review every two hours” from users claiming their withdrawals had been frozen or restricted.

According to the analysis, Bybit was unable to provide a specific date for when withdrawals would be restored. Some users reported that their assets had been restricted for at least three months, while others claimed their restrictions had lasted more than a year.

The analysis made a stark comparison: “Repeated withdrawal restrictions, a growing number of similar user complaints, and the absence of clear timelines remind me of the conditions preceding the collapses of Mt. Gox and FTX.”

These complaints do not, by themselves, establish that Bybit is insolvent. However, prolonged restrictions and the lack of clear resolution timelines raise serious questions about users' practical ability to access their funds.

September 2026: A Counterparty List Where Historical Interactions Can Trigger Account Freezes

In September 2026, Bybit published a “Counterparty List” naming more than 50 platforms, services, and organizations.

Under the new policy, a user's historical payment interactions with any listed entity could potentially trigger an account freeze, regardless of whether the transaction was legal at the time it occurred.

What does this mean in practice？

Even if you withdrew funds from a platform two years ago, and that platform has only recently been added to the list, your Bybit account could potentially be frozen because of that historical transaction.

In other words, past interactions with listed platforms—not necessarily current trading activity—can become grounds for account restrictions.

One commenter reported that their account had been blocked since September 13, 2026, with $11,000 frozen and the matter still unresolved at the time of the complaint.

Risk Rating: Extremely High Risk (Account Security and Withdrawals)

Four facts together paint a deeply troubling picture: $1.5 billion stolen, a recovery rate of just 5.3%, withdrawal-freeze complaints appearing every two hours, and account restrictions potentially triggered by historical transactions.

Bybit has demonstrated that it has the financial capacity to absorb a major loss—it survived the $1.5 billion hack—and it has shown a willingness to rebuild its security infrastructure, with a genuine effort to implement bank-grade cold-wallet protections.

However, the pattern of withdrawal restrictions, compliance reviews without clear resolution timelines, and counterparty screening based on historical interactions risks leaving ordinary users effectively held hostage by restrictions on their own money.

The hackers have taken funds that remain largely unrecovered, while ordinary users report being unable to access their assets because of transactions made years earlier.

For users, these are two different routes to the same devastating outcome: not being able to access their money.

3. Proof of Reserves Transparency: A 104% BTC Reserve Ratio—and the Limits of a Monthly Snapshot

PoR Data: Consistent Reporting, Transparency, and a Solid Technical Framework

Bybit's performance in reserve transparency ranks among the stronger showings in this series' assessments of high-risk exchanges.

Its 40th Proof of Reserves (PoR) report, published on September 30, 2026, was based on a snapshot taken on September 23. It covered 50 tokens and reported total holdings of $19.6 billion in major assets.

The key figures were as follows:

BTC: 56,131 BTC in user assets versus 58,722 BTC in reserves, giving a reserve ratio of 104%.

ETH: 551,869 ETH in user assets versus 570,018 ETH in reserves, giving a reserve ratio of 103%.

USDT: Approximately $3.59 billion in user liabilities versus $3.96 billion in reserves, giving a reserve ratio of 110%.

All 50 tokens covered by the report had reserve ratios of at least 100%. The figures were verified by third-party auditing firm Hacken.

Since launching its PoR program in December 2022, Bybit has published reports monthly and used Merkle Tree technology to allow users to independently verify whether their account balances were included in the snapshot.

These are meaningful transparency measures. But the limitations of a “monthly snapshot” need to be clearly understood.

The Limits of a Monthly Snapshot Must Be Made Clear

First, Hacken's verification is a technical check, not a comprehensive statutory audit.

Crypto Times explicitly noted that “Hacken verified the report's Merkle Tree data and confirmed wallet control, but did not conduct a full statutory audit.”

An independent analysis by Arkham also identified a discrepancy between the $16.2 billion in assets reported by Bybit and Arkham's own estimate of $14 billion, highlighting differences in methodology and asset accounting.

Second, the increase to $19.6 billion partly reflects expanded coverage, not simply an increase in deposits.

The 40th report added 10 tokens, expanding coverage from 40 to 50 tokens.

Bybit itself explained that the increase from $18.1 billion in the previous report to $19.6 billion “largely reflects the addition of 10 new tokens, rather than pure deposit growth.”

That distinction matters. A larger reported asset total does not necessarily mean existing customers deposited more money.

Third, the 11% decline in USDT user liabilities was not explained in the report.

Crypto Times pointed out that the report did not clarify whether the USDT had left the platform, been converted into other assets, or remained in products outside the report's comparable scope.

As the publication noted, “A single monthly snapshot cannot distinguish between these scenarios.”

Without further disclosure, users cannot determine what drove the decline.

Fourth, PoR demonstrates that assets cover liabilities—not that withdrawals will be processed smoothly.

Consider the user whose withdrawals were frozen and who was given a tentative resolution date of November 30. Their account balance could still be covered by reserves at a ratio of 104% in the relevant PoR snapshot.

Whether Bybit allows that user to withdraw is a separate issue from the platform's reserve ratio.

Proof of Reserves and the practical ability to access funds are two entirely different questions.

Risk Rating: Medium Risk (Reserve Transparency)

Bybit performs well on PoR transparency: 40 consecutive reports, coverage of 50 tokens, verification by Hacken, and user-level verification through Merkle Tree technology.

Nevertheless, important limitations remain. Hacken is not a statutory auditor. Arkham's independent estimate differed from Bybit's reported figure by more than $2 billion. The decline in USDT liabilities was not explained, and the monthly snapshot format inherently limits what the reports can tell us.

Most importantly, PoR cannot explain why some users claim their withdrawals have been frozen for months.

A reserve ratio above 100% is evidence of reported asset coverage at a particular point in time. It is not a guarantee that every user can withdraw their funds whenever they want.

4. Financial Strength and Trading Depth: Ranked No. 2 Globally, but What Does That Ranking Really Mean？

The Impressive Numbers

Global user base: More than 80 million users across over 181 countries.

Average daily trading volume: More than $18 billion (August 2026).

Global ranking: Among the world's top 10 cryptocurrency exchanges.

Q1 2026 derivatives trading volume: $1.49 trillion, ranking third among the top 10 exchanges, behind Binance ($4.90 trillion) and OKX ($2.19 trillion).

August 2026 derivatives trading volume: $321 billion, up 14.9% month over month.

Options market share: Surged from 9.3% to 22.4%, ranking second globally and gaining nearly 20 percentage points in just 12 months.

But Being No. 2 in Trading Volume Doesn't Mean Being No. 2 in Customer Assets

According to CoinGlass's Q1 2026 report, Bybit held approximately $5 billion to $7 billion in user assets, while Binance held $152.9 billion and OKX maintained more than $10 billion.

In other words, Bybit ranked second globally in trading volume, but its customer asset holdings amounted to only around 3%–5% of Binance's.

This suggests that Bybit operates as a high-turnover, relatively low-asset-retention platform. Large amounts of capital move in and out quickly, but the volume of assets retained over the long term is nowhere near what its trading-volume ranking might suggest.

Bybit's core user base consists largely of high-frequency derivatives traders, quantitative arbitrage teams, and retail speculators trading altcoins.

These users tend to follow a “bring your own capital, trade, and move on” approach. Through the high leverage and capital efficiency offered by Bybit's Unified Trading Account (UTA), traders can generate hundreds of thousands of dollars in daily trading volume with relatively little initial capital—for example, just a few hundred dollars in margin.

For these users, capital functions more like transaction turnover than long-term deposits.

This is not necessarily a negative characteristic. It may simply reflect the high-turnover nature of derivatives trading. However, it does mean that if users begin withdrawing funds on a large scale, Bybit's asset buffer may not be as substantial as its “world's No. 2” label suggests.

Risk Rating: Medium Risk (Financial Strength)

Bybit's massive trading volume, more than 80 million users, and rapidly growing options market share are genuine strengths.

However, its customer asset holdings remain in the second tier, far below what its trading-volume ranking might lead users to expect.

There is a meaningful gap between generating enormous trading volume and actually retaining substantial customer assets—a distinction that deserves serious attention when evaluating the platform's financial resilience.

5. Internal Operations and Management: Ben Zhou Remains in the Spotlight, but the Co-CEO Has Left

Founder and CEO: Ben Zhou

Bybit's founder and CEO, Ben Zhou, is a publicly identifiable executive with a verifiable professional background.

A Singaporean entrepreneur, Zhou appeared publicly just three days after the $1.5 billion hacking incident and participated in podcast interviews to explain what had happened and how the company was responding.

During one interview, he openly acknowledged a weakness in the company's security responsibilities:

“The incident exposed problems with the boundaries of our security responsibilities. We were attacked because of an issue involving a third-party wallet. At the time, our security team primarily covered internal systems, while external vendors were not continuously included in our monitoring framework. We subsequently expanded that scope. If an activity involves assets, the security team must be responsible for it, regardless of whether it is handled internally or externally.”

This willingness to publicly acknowledge shortcomings and explain specific corrective measures puts Bybit above average among the high-risk exchanges covered in this series.

It is a considerably stronger showing than MEXC, where the founder's identity has been difficult to verify, or BingX, where the co-founder's LinkedIn profile has reportedly been unavailable.

But Co-CEO Helen Liu Left in April 2026

On March 7, 2026, Bybit announced that co-CEO Helen Liu would leave the company on April 30 to pursue her own entrepreneurial ventures.

Liu joined Bybit in 2020 and held several senior positions, including Chief of Staff and Chief Operating Officer, before being appointed co-CEO in 2025.

A senior executive promoted to co-CEO in 2025 leaving less than a year later to start a new venture is, in itself, a development worth monitoring.

Corporate Governance: Is Ben Zhou Carrying the Company Alone, or Is There Still a Balanced Leadership Team？

Following Helen Liu's departure, Ben Zhou continued to lead the company as co-founder and CEO.

Bybit's public messaging emphasizes that “corporate culture is its real competitive moat.” However, after the departure of its co-CEO, whether decision-making authority has become further concentrated in Ben Zhou's hands is an important governance question to watch.

Risk Rating: Medium Risk (Management and Corporate Governance)

Ben Zhou's public response, willingness to acknowledge mistakes, and specific security improvements are positive indicators.

However, the departure of a co-CEO less than a year after her promotion raises questions about management stability.

For an exchange still recovering from a $1.5 billion hacking incident, the stability of its senior leadership is itself an important governance signal.

6. Genuine Community Feedback: One New Trustpilot Complaint Every Two Hours—and the Word “Bankruptcy”

A Divided Reputation

Users who support Bybit: They value its derivatives market depth, rapid growth in options trading, and ability to absorb the financial impact of the $1.5 billion hack. Ben Zhou's public response and subsequent security reconstruction have also helped maintain confidence among some users.

Users experiencing withdrawal freezes: Trustpilot has reportedly been receiving a new complaint every two hours. Users claim that withdrawals are frozen, compliance reviews have no clear resolution timelines, and customer support provides only template responses. Some users report restrictions lasting at least three months, while others claim they have continued for more than a year.

The headline of one CoinSpectator analysis went even further: “I'm Starting to Think Bybit Could Be Heading Toward Bankruptcy.”

Another user complaint on Zebra Complaints described a different dispute. After trading for nearly a month and generating profits, the user was allegedly informed that their trading activity violated platform rules. All profits were reportedly removed, and the platform demanded that the user compensate it for those profits.

“Trading works smoothly, but when something goes wrong, there's nowhere to turn.”

This description applies to Bybit as well.

Its derivatives markets, options products, and APIs generally provide a smooth experience for active traders. But once an account triggers a compliance review or withdrawal restriction, users may find themselves dealing with a system that provides no definite resolution date, no specific explanation, and no clear disclosure of which legal entity is responsible for handling their accounts.

Bybit's main community-level concerns center on account risk controls, source-of-funds reviews, and cases in which users are unable to obtain clear timelines for resolving restrictions over extended periods.

For cryptocurrency exchanges, anti-money laundering (AML) checks are unavoidable. However, platforms should also provide clear documentation requirements, accessible appeal channels, and transparent updates on review progress.

Without these safeguards, even users holding legitimate assets obtained through lawful transactions may face prolonged periods during which their funds are inaccessible.

The real issue is not whether exchanges should conduct compliance reviews, but whether users can understand the reasons, provide the required evidence, and regain access to their legitimate funds within a reasonable timeframe.

7. Overall Exchange Exit Risk Assessment

Overall Rating: Medium-High Risk (Significant Security and Operational Risks, Rather Than a High Probability of Exchange Exit)

Bybit's exchange exit risk is not the highest in this series. It has real trading activity, ranking second globally; genuine reserves, supported by 40 consecutive PoR reports; legitimate regulatory authorizations under MiCA and VARA; and a CEO and management team that did not simply disappear after the $1.5 billion hacking incident.

Unlike platforms such as UZX and Azbit, Bybit does not currently fit the profile of an exchange likely to disappear with customers' funds.

But not disappearing does not mean being safe.

Bybit's risks are concentrated in two major areas:

1. The $1.5 billion hack and the 5.3% recovery rate.

This was one of the largest single hacking incidents in crypto history. Bybit survived the attack, compensated users using its own funds, and rebuilt its cold-wallet infrastructure. These efforts deserve objective recognition.

However, 94.7% of the stolen funds remain unrecovered. This means the financial burden ultimately falls on Bybit's balance sheet. A platform that has just absorbed a net loss of approximately $1.42 billion, after accounting for recovered funds, needs to demonstrate that its financial resilience remains intact over time.

2. The recurring pattern of withdrawal freezes and opaque compliance reviews.

Trustpilot complaints appearing every two hours, counterparty screening based on historical interactions, customer support responses that fail to disclose the applicable legal entity or jurisdiction, and withdrawal restrictions reportedly lasting more than a year for some users—these are not one-off consequences of a hacking incident. They point to recurring operational concerns.

A user may never experience a hacking attack personally. But that same user could have their account restricted because of a transaction made years ago with a platform subsequently added to Bybit's counterparty list, potentially triggering a review with no clearly defined resolution date.

Bybit's current position can be summed up as “Too Big to Fail, but Too Uncertain to Trust Without Caution.”

Its trading volume ranks second globally, and its derivatives and options markets offer some of the industry's strongest liquidity. Ben Zhou's public response during the crisis also deserves recognition.

However, customer asset holdings are far below what its trading-volume ranking suggests. Its co-CEO departed relatively quickly after her promotion. Most strikingly, a platform that lost $1.5 billion to hackers has recovered only 5.3% of the stolen funds nearly two years later.

Meanwhile, ordinary users report frozen withdrawals and receive responses such as “There is no specific date for resolution.”

8. Recommendations for New and Existing Users

Recommendations for New Users

1. Don't confuse “No. 2 globally” with “my money is absolutely safe.”

Bybit survived a $1.5 billion hacking incident, but that does not mean your account cannot be frozen because of a historical transaction involving an entity on its counterparty list. The Trustpilot complaints describing withdrawals frozen for months without a clear resolution date should not be ignored.

2. If you're in Japan, South Korea, or Singapore, check your account status first.

Bybit began its phased withdrawal from the Japanese market in January 2026. Its app has been removed in South Korea, and it has been placed on Singapore's MAS Investor Alert List.

Using Bybit in these markets does not necessarily mean you benefit from local regulatory protection. Instead, you may face restrictions or the risk of being excluded from the market altogether.

3. If you still decide to try Bybit, test withdrawals with a small amount first.

Start with an amount you can afford to lose and complete the entire process: deposit, trade, and withdraw.

If the withdrawal goes through smoothly, you can consider increasing your exposure. If your account triggers a compliance review, at least the amount at risk will be relatively small.

4. Consider self-custody for substantial crypto holdings.

The $1.5 billion hack and recurring withdrawal-freeze complaints demonstrate a fundamental point: even the most sophisticated PoR system and cold-wallet infrastructure cannot replace your own control over private keys.

For substantial long-term holdings, consider storing your assets in a hardware wallet rather than leaving everything on an exchange.

Recommendations for Existing Users

1. Assess your exposure to historical counterparty interactions.

Bybit's September 2026 counterparty-list policy means that historical transactions involving platforms on the list could potentially become grounds for account restrictions today.

Review your transaction history. If you have interacted with sanctioned or high-risk platforms, prepare for the possibility of additional scrutiny and make appropriate arrangements for your funds.

2. Don't wait until you've made a profit to withdraw.

The complaint on Zebra Complaints about orders allegedly being deleted after the user generated profits highlights the possibility of additional scrutiny following profitable trading activity.

Consider withdrawing profits periodically rather than leaving substantial realized or unrealized gains in your account for extended periods.

3. Keep complete records of everything.

The user whose withdrawals were frozen and who was given a tentative November 30 resolution date is reportedly preparing legal action and has already filed a formal complaint with the Seychelles FSA.

Keep complete records of email correspondence, transaction histories, customer support conversations, and screenshots. These documents may form the foundation of any future appeal or legal claim.

4. Monitor governance changes following the co-CEO's departure.

Helen Liu left Bybit in April 2026. Whether the company's decision-making structure becomes more concentrated following her departure is worth monitoring, as it could influence how the platform responds to its next major crisis.

Final Recommendations

Who is Bybit suitable for？

Active traders who need top-tier derivatives and options liquidity, have confidence in Ben Zhou's crisis management and Bybit's PoR transparency, and are willing to accept the risks of withdrawal reviews and account restrictions triggered by historical transactions.

Who should avoid Bybit？

Users in Japan, South Korea, and Singapore, where the platform faces regulatory warnings, restrictions, or effective market exclusion.

Investors who intend to store substantial assets on the exchange over the long term. The $1.5 billion hack and 5.3% recovery rate are important lessons.

Anyone who cannot tolerate having withdrawals frozen for months without receiving a definite resolution date.

Bybit represents one of the most extreme examples of the crypto industry's paradox: too big to fail, yet too big to feel entirely secure.

It survived one of the largest hacking attacks in crypto history, compensated users with its own funds, rebuilt a bank-grade cold-wallet infrastructure, and had CEO Ben Zhou facing the cameras just three days after the incident to explain what had happened.

But nearly two years later, only 5.3% of the $1.5 billion has been recovered.

At the same time, Trustpilot continues to receive new complaints approximately every two hours. Users report frozen withdrawals and responses such as “There is no specific date for resolution.” Some have even begun using the word “bankruptcy” to describe their concerns.

An exchange can simultaneously rank second globally in trading volume while its users wait months to withdraw their money. There is no contradiction between these two realities when the restrictions affect individual accounts, while compensation and financial losses are reflected on the platform's balance sheet.

Coming Next: WikiBit Exchange Exit Risk Rankings #53 — Binance. Stay tuned!

Risk Disclaimer: This article represents an independent analytical opinion and does not constitute investment advice. Cryptocurrency investments involve substantial risks. Please exercise caution before investing.

Information in this article is current as of November 2, 2026. Please cross-check the latest developments against multiple sources.

About WikiBit

WikiBit is a regulatory and risk intelligence platform built specifically for cryptocurrency investors. It provides real-time access to global exchange regulatory licenses, credit ratings, risk alerts, industry news, and genuine user reviews, helping investors identify potential risks, stay away from problematic platforms, and make more informed trading decisions.

Before investing in crypto, check WikiBit first!

Download the WikiBit App now and add an extra layer of protection to your crypto assets:

https://wikibit.onelink.me/wgfF/1b1dn69b