How Bybit Freezing My Account Put My Life in Danger

[Franclock]

The last few days have been among the most difficult of my life.

Bybit restricted my account and froze access to my funds. Unfortunately, nearly all of my savings were held on the platform. As a result, I suddenly found myself unable to access the money I depend on for daily living, business operations, and emergencies.

In addition, my Bitcoin deposit of 0.04645199 BTC    https://kommodo.ai/i/YaLR0PpsJ2CPWIXciawq has not yet been credited despite being confirmed on the blockchain. I also have more than 1,000 USDT that I cannot withdraw.

All of these funds originated from my personal BitGo account, and I have been fully willing to cooperate with any verification requests, provide documents, screenshots, and even participate in a video call if necessary.

The stress caused by this situation has been overwhelming. Losing access to my money has affected my sleep, my health, and my ability to operate normally. No customer should have to experience such uncertainty when their life savings are involved.

I am not asking for special treatment. I am simply asking for a fair and timely resolution. If my account can be restored, I respectfully request that Bybit do so as soon as possible. If not, I ask that I be allowed to withdraw my funds and close the account.

I hope that by sharing my experience, others will understand the importance of not keeping all of their assets on a single platform and the importance of prompt and transparent communication when customers face emergencies.


Bybit UID: 539690641

[Oshosondy]

Bybit restricted my account and froze access to my funds. Unfortunately, nearly all of my savings were held on the platform. As a result, I suddenly found myself unable to access the money I depend on for daily living, business operations, and emergencies.

You supposed to use noncustodial wallet for this instead of an exchange account that you do not have complete control over. This has taught you lesson already. If you do nothing wrong, I hope they will release your coins.

Use social media like X to also complain. Bybit will be on X.

[SatoPrincess]

I’m sorry to hear what you’re going through at the moment. Did they give you a reason why your account was frozen? As you know now, storing huge amounts in centralized exchanges can end badly. I think you should be able to get it sorted if you can prove the source of recent deposits isn’t from illegal activities.

[CryptoBuds]

I'm really sorry to hear about your situation. Hope Bybit will quickly sort out this mess after you submit your KYC and all the necessary paperwork.

It is precisely because of this danger that golden rule has been established in Bitcoin world, If you don't have the private keys, then that coin doesn't belong to you.

Leaving even a small fraction of extra crypto in an exchange's cage beyond what is needed for short term trading or buying and selling is sheer folly. Never keep more on exchange than you can afford to lose.

Finally, don't be stupid enough to put all your eggs in one basket. Don't keep your pocket assets in one place, but spread them out over two or three different wallets and reputable platform.

[yahoo62278]

You should probably move this to the scam accusations board and post all the relevant info needed for that section. While it's not a normal scam accusation, it potentially could be. Like others have said, you shouldn't be storing your assets on any wallets that you do not control. Unfortunately you're not the only 1 that does that and you leave yourself open to situations like this that could end up in you getting nothing.

Live and learn I hope.

[Ronsbit]

So sorry about your experience OP, this is why we are all advised not to keep our assets with any third-party exchange because they could put one on a high jump one day. Such an amount of money should not have been held in a platform for so long, irrespective of the situation or the comfort you find in the exchange; they are not safe. So, from the hack they had experienced previously, you still did not learn from that?
Always remember "Not your key, not your coin" Any asset that is not under your custody is not your own. As long as you have no access to the private key, you do not own it fully, as the exchange can restrict you from accessing it at any point in time. So sorry, this is a lesson learnt the hard way. Maybe if heaven intervenes on your behalf, you would be the last person to keep your assets with a third-party exchange.

[MarryWithBTC]

Everytime we keep seeing the reason to sustain the 'Not your keys, not your coins" crusade.
You will think that you are safe or the platform is reliable until it happens to you.

I don't blame you for using a custodial service, because we all use exchanges,
I only blame you for putting all your funds in one exchange.

Your emergency funds should not be anywhere in an exchange, let alone money for your daily upkeep.
What happened to your country's fiat.
I sympathise with you and hope you've learnt your lessons this time.

[rat03gopoh]

What's the reason they froze your funds?
What account recovery measures are they offering, and how far along is the process?

Unfortunately, there aren't any Bybit representatives nearby, so your complaint probably won't get their attention. You should be more vocal on platforms where they're active like their officials X, TG, etc . I've seen on Trustpilot that they seem to be actively responding to negative reviews recently. www.trustpilot.com/review/bybit.com

[Don Pedro Dinero]

I only blame you for putting all your funds in one exchange.

Your emergency funds should not be anywhere in an exchange, let alone money for your daily upkeep.

I was just about to mention that. Leaving aside whatever may have happened – and we only have the OP’s version of events here – the thread title seems somewhat exaggerated. A modicum of risk management awareness would have prevented him from putting everything on a website, and he admits as much at the end of the post. The trouble is that this is often how we humans learn.

[Rikafip]

I hope that by sharing my experience, others will understand the importance of not keeping all of their assets on a single platform

Your problem isn't that you kept your money on a single platform, it's that you kept it on a platform at all.

One of the advantages of crypto is that you can be your own bank and avoid relying on third parties. You gave that up for the convenience of storing your funds in a place where there isn't much you can do if they decide to block your account for whatever bullshit reason they come up with.

I am not asking for special treatment. I am simply asking for a fair and timely resolution. If my account can be restored, I respectfully request that Bybit do so as soon as possible. If not, I ask that I be allowed to withdraw my funds and close the account.

As far as I know, Bybit doesn't have an account here, so its probably better if you try to escalate your case via social media platforms where they have presence.

[lovesmayfamilis]

Ironically, yesterday I also had some of my funds blocked, that I needed to exchange, explaining that my coins had not passed the AML verification. Now such locks are becoming quite popular. I don't know what the reason is; I think that some have begun to automatically use AI, which can make mistakes from time to time. What happened next? I began to communicate with technical support, asking for an explanation of the situation, and the support advised me to check every transaction and every wallet before exchanging. Everything ended well for me, but I would also like to warn you that sometimes it is not our fault that we are accused or blocked. I found the reason, and it was confirmed twice. At the moment when the exchanger offers its wallet, it also needs to be checked, and no matter how strange it may be, the wallet of this exchanger was the "dirty" wallet with a high level of risk. So not only don't trust exchanges to keep your funds, but also check all transactions and wallets with whom you want to interact from time to time.

[NotATether]

Ironically, yesterday I also had some of my funds blocked, that I needed to exchange, explaining that my coins had not passed the AML verification. Now such locks are becoming quite popular. I don't know what the reason is; I think that some have begun to automatically use AI, which can make mistakes from time to time. What happened next? I began to communicate with technical support, asking for an explanation of the situation, and the support advised me to check every transaction and every wallet before exchanging. Everything ended well for me, but I would also like to warn you that sometimes it is not our fault that we are accused or blocked. I found the reason, and it was confirmed twice. At the moment when the exchanger offers its wallet, it also needs to be checked, and no matter how strange it may be, the wallet of this exchanger was the "dirty" wallet with a high level of risk. So not only don't trust exchanges to keep your funds, but also check all transactions and wallets with whom you want to interact from time to time.

AI does not work well for AML checks.

Because ultimately, the process of performing a check simply consults a database of addresses with tags and incidents on them.

It's not something a well-written API can't already do.

Plus, exchanges usually have contracts with the leading commercial AML checkers to use their licensed technology for their exchange.

Use BitMixList AML checker to avoid frozen funds (a new, upgraded checker will be released very soon)

[logfiles]

I’m sorry to hear what you’re going through at the moment. Did they give you a reason why your account was frozen? As you know now, storing huge amounts in centralized exchanges can end badly. I think you should be able to get it sorted if you can prove the source of recent deposits isn’t from illegal activities.

These exchanges sometimes literarily freeze you account for no reason. Some weeks back I had my OKX account get blocked. I wasn't able to withdraw the funds I already had in there that I was using for trading unless if I did some verification. Mind you this is an account that is already fully verified with documents that have not even expired yet.

It can put you in a precarious situation especially if you need to urgently use the funds.

[tbct_mt2]

These exchanges sometimes literarily freeze you account for no reason. Some weeks back I had my OKX account get blocked. I wasn't able to withdraw the funds I already had in there that I was using for trading unless if I did some verification. Mind you this is an account that is already fully verified with documents that have not even expired yet.

It can put you in a precarious situation especially if you need to urgently use the funds.

Centralized exchanges as the name means, they're centralized and users don't control their funds. Users of centralized exchanges are not given any wallet mnemonic seed or private key, what they are given are public addresses for making deposits to their accounts. Then after deposits, funds belong to the centralized exchanges, they control it and decide whether they refund it for users through withdrawals or make a scam exit, freeze the fund, confiscate it, whatever.

Reminder: do not keep your money in online accounts.
Not your keys, not your coins.

OP's story is another one added to list of many accidents with centralized exchanges.
Be careful using Binance & Centralized Exchange
Sanctioned Services and the service traceability to this forum, Any danger?
Recent events should make everyone withdraw all their coins to their own wallets: Part 1
Recent events should make you withdraw all your coins to your own wallet: Part 2
Recent events should make you withdraw all your coins to your own wallet: Part 3
Get your coins out of custodial wallets now: Part 4

Why is this thread not created in Exchanges board?

[Rikafip]

These exchanges sometimes literarily freeze you account for no reason. Some weeks back I had my OKX account get blocked. I wasn't able to withdraw the funds I already had in there that I was using for trading unless if I did some verification. Mind you this is an account that is already fully verified with documents that have not even expired yet.

I had the same thing happen with Binance 3-4 years ago when they blocked my withdrawals for no obvious reason. It took me more than a month of pestering and arguing to finally get it sorted out (what did the trick was escalating my case on their subreddit).
 
The first thing I did after that was withdraw everything I had there (which wasn't much anyway, but still), and I haven't touched another one of those exchanges since. Lesson learned.

[SatoPrincess]

These exchanges sometimes literarily freeze you account for no reason. Some weeks back I had my OKX account get blocked. I wasn't able to withdraw the funds I already had in there that I was using for trading unless if I did some verification. Mind you this is an account that is already fully verified with documents that have not even expired yet.

I had the same thing happen with Binance 3-4 years ago when they blocked my withdrawals for no obvious reason. It took me more than a month of pestering and arguing to finally get it sorted out (what did the trick was escalating my cases on their subreddit).

I think it could help OP’s situation if he follows your approach, he could get a quicker response on their Reddit sub  and on other platforms where they are active. I don’t think bitcointalk is the best place considering the exchange doesn’t even have an active ANN thread here.

[JollyGood]

If you browse online just a few minutes you will find many complaints against Bybit. I cannot recall everything but I as some cases against Bybit were made here, I searched online and discovered they were accused of selectively scamming their own customers. After they froze accounts and forced customers to submit to their KYC demands, they would start asking about source of funds.

I did not know they were still using these tactics. I suppose the best advice for anyone reading this is to avoid Bybit like they would the plague, it really is that simply. As for the predicament that you find yourself in, my advice is to use the Scam Accusations board as it is the appropriate board to report scams. After that, I would advise you to post about your issue on any/all platforms that Bybit use (such as Reddit as well as crypto forums).

The last few days have been among the most difficult of my life.

Bybit restricted my account and froze access to my funds. Unfortunately, nearly all of my savings were held on the platform. As a result, I suddenly found myself unable to access the money I depend on for daily living, business operations, and emergencies.

In addition, my Bitcoin deposit of 0.04645199 BTC    https://kommodo.ai/i/YaLR0PpsJ2CPWIXciawq has not yet been credited despite being confirmed on the blockchain. I also have more than 1,000 USDT that I cannot withdraw.

All of these funds originated from my personal BitGo account, and I have been fully willing to cooperate with any verification requests, provide documents, screenshots, and even participate in a video call if necessary.

The stress caused by this situation has been overwhelming. Losing access to my money has affected my sleep, my health, and my ability to operate normally. No customer should have to experience such uncertainty when their life savings are involved.

I am not asking for special treatment. I am simply asking for a fair and timely resolution. If my account can be restored, I respectfully request that Bybit do so as soon as possible. If not, I ask that I be allowed to withdraw my funds and close the account.

I hope that by sharing my experience, others will understand the importance of not keeping all of their assets on a single platform and the importance of prompt and transparent communication when customers face emergencies.


Bybit UID: 539690641