May 19, 2025
In a swift response to a glitch affecting a user of its Apple-based know-your-client (KYC) system, cryptocurrency exchange Bybit has rallied its top executives and multiple departments to resolve the issue. The incident, which led to withdrawal restrictions for a single user, was swiftly addressed by Bybit’s team, including its Chief Operating Officer, Helen Liu, and appears to have been a unique, non-systemic anomaly.
Bybit’s Rapid Response to the Glitch
On May 18, Bybit’s China Team reported on social media platform X that they had received alerts of withdrawal restrictions linked to a KYC verification anomaly encountered by users logging in with Apple ID. An internal investigation quickly ensued, revealing that the issue was isolated and did not compromise the security of the user’s account or funds. With approximately $100,000 at stake, Bybit’s response was both immediate and comprehensive.
The exchange’s approach involved a coordinated effort with various departments, including customer service, risk control, and technical teams, to ensure a thorough resolution. Notably, the involvement of COO Helen Liu underscores the significance Bybit places on user security and trust. “This was not just a technical issue; it was a trust issue,” Liu commented, highlighting the executive-level commitment to user experience and platform integrity. This incident echoes the broader trend of integrating traditional financial tools with crypto, as seen in Mesh’s addition of Apple Pay for crypto transactions.
The Role of Influencers and Market Dynamics
The incident drew attention from the Chinese-speaking crypto influencer EnHeng, who played a pivotal role in alerting Bybit to the issue. EnHeng had discovered the glitch through a group chat discussion and swiftly verified and communicated it to the exchange. His involvement underscores the growing influence of crypto personalities in shaping market practices and safeguarding retail investors’ interests.
“This incident really made me feel the value of having influence,” EnHeng stated, emphasizing the importance of using his platform to advocate for retail investors, who often find themselves without a voice in the fast-paced crypto landscape. His sentiments resonate with many in the community who view retail investors as vulnerable to market forces and technical mishaps.
Broader Context of Exchange Lockouts
The Bybit incident is a reminder of the broader context in which exchanges occasionally restrict account access. Such lockouts are not always indicative of systemic flaws; rather, they can be precautionary measures to prevent potential fund losses. For instance, earlier this year, the Phemex exchange halted withdrawals following suspicious outflows, and Indian platform Mudrex paused crypto withdrawals to enhance compliance. This reflects a ‘huge shift’ in crypto firms’ compliance mindset, as noted by industry leaders.
These incidents highlight an ongoing tension in the crypto world: the balance between security and accessibility. The adage, “Not your keys, not your coins,” is often cited as a reminder of the importance of self-custody in cryptocurrency, where users retain control over their private keys, ensuring true ownership of their assets.
Implications and Unanswered Questions
As Bybit navigates the aftermath of this glitch, several questions remain about the robustness of KYC processes tied to third-party logins like Apple ID. Could this incident prompt a reevaluation of how exchanges handle external authentication methods? And what safeguards will be implemented to prevent future occurrences?
Looking forward, Bybit’s resolute handling of this situation—while commendable—may set a precedent for how exchanges respond to user concerns and technical anomalies. As the crypto market continues to mature, the interplay between technological innovation and user security will undoubtedly remain a focal point for both exchanges and users alike. The challenge will be ensuring that security measures evolve in tandem with the ever-expanding capabilities of crypto platforms.
In the coming months, the industry will be watching closely to see how Bybit and other exchanges adapt their systems to bolster user trust while maintaining the seamless experience that crypto users have come to expect.
Source
This article is based on: Apple KYC glitch on Bybit draws swift executive response to recover $100K
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
