The exchange told users its funds are secure and services are normal while concerns swirl around Binance and Polymarket
Bybit wants its users to know one thing: nothing is on fire over there.
On October 29, 2026, the exchange said its platform is not affected by the security incidents rattling other corners of crypto. It added that trading and withdrawals are running normally and that user funds remain secure.
The timing is deliberate. The statement landed while concerns were spreading about anomalous transfers and operational issues at Binance, plus a separate incident at Polymarket. Bybit also pushed users to rely on its official communication channels instead of whatever is circulating on social media.
The broader backdrop is uneasy. Alongside the concerns about Binance, the Polymarket incident was serious enough that Tether and Circle froze certain transactions. Freezing means the issuer blocks specific tokens at the contract level so they can’t be moved. It’s a powerful tool, and its use is usually a sign that something has gone meaningfully wrong somewhere.
The ghost of February 2025
Bybit has credibility on this topic for an uncomfortable reason. It has lived through a worst-case scenario.
On February 21, 2025, hackers stole between $1.46 and $1.5 billion in Ethereum from Bybit’s cold wallets. The theft hit one cold wallet, while the exchange’s other wallets were unaffected. Bybit has since pursued legal action against those involved, including North Korea’s Lazarus Group.
What happened next is why the October statement carries some weight. Bybit kept operating, honored all withdrawals, and drew on its corporate reserves to cover the stolen amount within approximately 12 hours.
The exchange processed over 580,000 withdrawal requests after the breach, with requests peaking at 350,000 within the first 10 hours. Every one of those was a test of whether the exchange could pay. It did.
As of mid-2026, Bybit had recovered or frozen roughly $48 to $75 million of the stolen funds. Compared with a loss of up to $1.5 billion, that is a small slice.
The security rebuild
After the breach, Bybit rolled out upgraded security measures, including AI-assisted monitoring tools.
Those tools reportedly blocked over $700 million in potential losses from suspicious withdrawals earlier in 2026. That figure comes from the exchange’s own side of the ledger, so it is best read as Bybit’s account of its defenses rather than an independent audit.
What this means for traders and the exchanges
For traders, the practical takeaway is straightforward. If you hold funds on Bybit, the exchange says your access is normal, and there is no word of a pause on deposits or withdrawals.
The fact that Tether and Circle stepped in to freeze transactions tied to the Polymarket incident is a reminder that centralized stablecoin issuers hold real power during a crisis. That can help contain damage. It also highlights how much of crypto’s safety net still depends on a handful of companies making fast judgment calls.
What to watch next: further details on the Binance and Polymarket situations, any additional freezes from stablecoin issuers, and whether Bybit’s status holds steady as the story develops. For now, the exchange’s message is that business is running as usual.
