Apple KYC glitch on Bybit draws swift executive response to recover $100K

Bybit, a cryptocurrency exchange, addressed a glitch impacting a single user’s Apple-based KYC system. The issue, reported on May 18th via an X post by the Bybit China Team, involved withdrawal restrictions stemming from a KYC verification anomaly when logging in with an Apple ID. The exchange swiftly mobilized a multi-departmental response, including its COO, Helen Liu, customer service, risk control, the Chinese-language division, product managers, and the technical team. Close coordination with the affected user ensured a resolution.

Bybit’s internal investigation determined the incident was isolated, affecting only one user and not indicative of a systemic problem. The user’s KYC information remained intact, and account funds were secure throughout. While Bybit hadn’t responded to Cointelegraph’s request for comment at the time of writing, the incident highlighted the exchange’s proactive approach to resolving user issues.

The resolution was also brought to light by Chinese-speaking crypto influencer EnHeng, who initially discovered the bug in a group chat. He verified the issue, reported it to Bybit, and lauded the exchange’s swift response in helping the user recover approximately $100,000 in funds. EnHeng emphasized the importance of influential voices advocating for retail investors, who often lack resources and a platform to address their concerns within the cryptocurrency market.

Account lockouts on cryptocurrency exchanges are not uncommon. These actions can range from emergency measures to prevent fund losses, as seen with Phemex halting withdrawals in late January due to suspected suspicious outflows, and Mudrex temporarily suspending withdrawals for compliance reasons. Law enforcement requests can also lead to account freezes, as demonstrated by the freezing of Palestinian accounts last summer following an Israeli seizure request. OKX also took action, terminating accounts linked to Tornado Cash or sanctioned addresses. These events underscore the “Not your keys, not your coins” principle, reminding users that true asset control resides in possessing private keys.