How Bybit Freezing My Account Put My Life in Danger

[Rikafip]

How would you feel if you had a large amount of money and suddenly needed it urgently in an emergency situation?

I don't know about the others, but I will never know, since I have never had (and never will have) large amounts of money on any centralized exchange.

Far too many people use centralized exchanges as banks, when in fact they are a combination of the worst things from both worlds, crypto and banking.

[GeorgeJohn]

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.

Some of us is suppose to know that exchange is not a place were we are suppose to store or hold our coins...because exchange can be hacked at any time and you will lose your coins..

Secondly, before you keep your coins in exchange to stay long, ensure that you have completed all the verification with the exchange...one of the reasons why Bybit restricted you, is due to you haven't done your verification...And this has been a mistake most of us that's holding coins always make...

I will advice some of us instead of using exchange to hold our coins, we should use, cold hardware wallets to hold our for long-term and anytime we need to convert to fiat currency, we send it to exchange for conversion to our preferable currency...
 

[Rikafip]

Secondly, before you keep your coins in exchange to stay long, ensure that you have completed all the verification with the exchange...one of the reasons why Bybit restricted you, is due to you haven't done your verification...And this has been a mistake most of us that's holding coins always make...

That's not true, and I can tell you that from a personal experience, that having a fully verified account will automatically protect you from exchange's bullshit decisions.

one of the reasons why Bybit restricted you, is due to you haven't done your verification...And this has been a mistake most of us that's holding coins always make...

And how exactly you concluded that OP doesn't have fully verifiied account?

[sunsilk]

Secondly, before you keep your coins in exchange to stay long, ensure that you have completed all the verification with the exchange...one of the reasons why Bybit restricted you, is due to you haven't done your verification...And this has been a mistake most of us that's holding coins always make...

AFAIK, kyc is mandatory with Bybit and so with the deposits made by OP, he's possibly verified already.

The mistake he did is that he's kept that quite large savings he's got on Bybit instead of having it on his own custody.

This is one of the risks for keeping our funds on exchanges but I think that there's a deeper reason to this, if OP ever come back might tell us some more.

[JollyGood]

Bybit has a reputation for selectively scamming their users. If you search online you will find that there are many complaints against them for selective scamming. It seems they have in the past asked for KYC and then asked questions about the source of funds that were deposited. In some cases for one reason or another it is not possible to provide it but that does not mean an exchange can indefinitely keep the funds.

The OP should elaborate further regarding his experiences with Bybit.

AFAIK, kyc is mandatory with Bybit and so with the deposits made by OP, he's possibly verified already.

The mistake he did is that he's kept that quite large savings he's got on Bybit instead of having it on his own custody.

This is one of the risks for keeping our funds on exchanges but I think that there's a deeper reason to this, if OP ever come back might tell us some more.

[MarryWithBTC]

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.

We always learn the hard way.
But the smartest thing to do is to learn from others mistakes, but most times we ignore others mistakes and assume it will never happen to us.
This is an avenue for most people making similar mistakes to learn.
This was not the original board where this thread was created. It nearly confused me.

[348Judah]

For any purpose we want to use a wallet for must be well defined and we are also expected to understand the certain condition that requires for the use of costodial wallet from non-costodial wallet, this is the first issue that people have because they don't seems to understand their differences.

If you don't want to have kyc issue or needed to hold your asset on your wallet for long without anyone having control over it, then make sure that you make use of non-custodia wallet and they are available for you to use, for those that make use of a custodial wallet, maybe they are having little amount of coins on its all the use it for trading, but the risk is what should be spelled out, not your keys not your coins.