Bybit Says Trading and Withdrawals Remain Normal
Bybit said on 29 October 2026 that trading and withdrawals were operating normally and user funds remained secure, despite security concerns involving Binance and a separate incident at Polymarket. The exchange urged users to rely on its official channels for updates.
The statement follows Bybit’s February 2025 hack, in which attackers stole an estimated $1.46 billion to $1.5 billion in ETH from a cold wallet. Bybit said it continued processing withdrawals and covered the shortfall with corporate reserves within about 12 hours. It reported handling more than 580,000 withdrawal requests after the breach. By mid-2026, about $48 million to $75 million of the stolen funds had reportedly been recovered or frozen.
Bybit also says AI-assisted monitoring blocked more than $700 million in potential losses from suspicious withdrawals earlier in 2026; that figure has not been independently audited. The article reports that Tether and Circle froze certain transactions linked to the Polymarket incident, highlighting the role of centralized stablecoin issuers during security crises. Traders should monitor official updates on Bybit, Binance and Polymarket, as well as any further token freezes.
Neutral
The news is neutral for the wider crypto market because Bybit reported no service disruption, withdrawal pause or loss of user access. Its statement may reassure Bybit customers in the short term, but it does not resolve the separate concerns involving Binance or the Polymarket incident. The claims about Bybit’s current status and security tools come from the exchange, and the reported $700 million in prevented losses was not independently audited.
Past exchange security events show that market reactions can depend less on initial reassurance than on whether withdrawals remain open, losses are covered and independent details emerge. Bybit’s response to its 2025 breach—continuing withdrawals and using reserves to cover the stolen amount—may support confidence in its ability to manage a crisis. However, the relatively small reported recovery of the stolen funds also underscores the risks of exchange custody.
In the short term, traders may monitor exchange status notices, withdrawal activity, token flows and any further freezes by Tether or Circle. A confirmed interruption or evidence of wider contagion could increase volatility and prompt movement of assets off exchanges; normal operations at Bybit alone are unlikely to create a broad bullish catalyst. Over the longer term, trust will depend on transparent updates, verifiable security controls and evidence that platforms can meet withdrawals under stress. Overall, the report is reassuring for Bybit users but insufficient to establish a market-wide change in risk.