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Bybit Suspends US Dollar Deposits and Gives a Deadline for Withdrawals

2 mins
5 March 2023, 14:51 GMT+0000
Updated by Harsh Notariya
15 March 2023, 12:12 GMT+0000
In Brief
  • Bybit exchange announced the suspension of USD payment via bank transfers (SWIFT).
  • It will pause USD withdrawals from Mar. 10, 2023, 12 AM UTC.
  • Last month, Binance suspended USD transfers.
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The crypto exchange Bybit has paused US Dollar (USD) deposits due to “service outages” from partners. Is it the latest victim of Operation Choke Point?

Bybit exchange announced the suspension of USD payment via bank transfers and gave a deadline to withdraw USD by Mar. 10, 2023, 12 AM UTC. The exchange will terminate the USD withdrawal via Wire Transfer (including SWIFT).

However, the deposits will work through the Advcash wallet, and Bybit users can buy cryptocurrencies through credit cards.

Does Bybit Have Ties With Silvergate?

Bybit claims the suspension is due to “service outages” from the end-point processing partner. Coincidentally, Silvergate shut down the Silvergate Exchange Network (SEN) this Friday. SEN allowed traders to move USD between their bank accounts and exchanges as long as the exchange and the trader had accounts at Silvergate.

The community questions if Bybit used SEN for USD payments.

The Operation Choke Point

Before Bybit, Binance announced a temporary suspension of USD transfers on Feb. 8. After last year’s events, such as the collapse of FTX, Celsius, Voyager, etc., the US regulatory authorities have seemingly ignited operation Choke Point 2.0.

Operation Choke Point was a crackdown by the US regulators on “high-risk” companies in 2013. It was a rogue operation that cut down the banking access of the companies related to firearms, drugs, loans, etc. The Venture Capitalist Nic Carter believes the government has launched a similar crackdown on the crypto companies since Jan. 3.

Screenshot of Nic Carter Operation Choke Point 2.0 article
Source: Pirate Wires

On Jan. 3, the US regulators, including the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), issued a joint statement to the banks. The report warned the banks with crypto exposure to align with “safe and sound banking practices.”

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In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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