Bybit Resolves Apple-KYC Glitch, Restores $100,000 Access

Cryptocurrency exchange Bybit recently faced a technical issue that affected a single user who encountered difficulties with the Apple-based know-your-client (KYC) system. The glitch prevented the user from accessing their account and making withdrawals. The Bybit China Team swiftly responded to the situation, involving multiple departments and an executive to resolve the issue.

The incident was first reported on May 18, when the Bybit China Team received complaints about users experiencing withdrawal restrictions due to a KYC verification anomaly when logging in with an Apple ID. The team immediately mobilized various departments, including the firm’s chief operating officer, Helen Liu, the heads of customer service, risk control, the Chinese-language division, product managers, and the technical team. The exchange coordinated its actions with the affected user to ensure a swift resolution.

After conducting an internal investigation, Bybit concluded that this was a unique case affecting an individual user and not a systemic issue. The account’s KYC information was not tampered with, and the funds in the account remained secure throughout the incident. The user was able to recover access to approximately $100,000 worth of funds with the assistance of Bybit’s staff.

The swift response from Bybit was highlighted by a Chinese-speaking crypto influencer, who claimed to have flagged the issue to the exchange after noticing it in a group chat. The influencer emphasized the importance of having a voice in the market and using resources to speak up for retail investors, who often lack representation and are vulnerable to such issues.

Being locked out of a cryptocurrency exchange account or some of its features is not an uncommon occurrence. Often, it is an emergency measure meant to prevent fund losses. In recent examples, exchanges like Phemex and Mudrex have temporarily halted withdrawals due to suspicious outflows and compliance improvements, respectively. Additionally, law enforcement requests have led to the freezing of user accounts in certain instances.

These incidents underscore the importance of the adage popular in the Bitcoin community: "Not your keys, not your coins." This statement serves as a reminder that real control over assets comes only with control over the private keys that allow for signing transactions. The recent glitch on Bybit highlights the need for robust KYC systems and prompt customer support to ensure the security and accessibility of user funds.