26.05.2026 11:40
Global cryptocurrency exchange Bybit froze a user's $200,000 account without providing any justification, sparking a trend on social media. Following the incident, it emerged that many users have experienced similar grievances. For Turkish users trading on Bybit, a global crypto exchange previously engaged in banned activities in Turkey, the path to seeking rights is effectively closed. Here are the details…
A crypto content creator known by the username @cryptolyxe shared with the public on his X account that the global cryptocurrency exchange Bybit froze his account without providing any justification and blocked his personal funds of $200,000. The post quickly reached over 600,000 views.
In his post, the user stated that he had been using his account without any issues for over 2 years, achieving a 9-figure trading volume and keeping a 7-figure balance on Bybit. He mentioned that the account was frozen 3 days ago after a $10,000 deposit. The user stated that despite completing KYC verification on Bybit, his funds were seized, and he was unable to withdraw any money.
MANY USERS EXPERIENCE SIMILAR ISSUES
As the post caused a huge uproar, many users from the crypto community made posts indicating they had experienced similar issues. Some users stated that they encountered the same problem, waited for months for the block to be lifted, and that customer representatives did not respond to any of their questions during this period. Some users stated that Bybit froze accounts without providing a reason, only citing 'suspicious activity', that this situation was becoming increasingly frequent, and that they deleted their Bybit accounts for this reason.
BYBIT CONTINUES PROHIBITED ACTIVITIES IN TURKEY
With Law No. 7518, which came into effect in July 2024, it was explicitly prohibited for foreign crypto platforms without an SPK license to conduct referral programs, offer Turkish language support, and engage in marketing activities aimed at Turkish users. Bybit, however, does not recognize this ban. The referral system is being run uninterrupted through Turkish crypto influencers with hundreds of thousands of followers and Telegram channel managers. Turkish users are being directed to high-risk leveraged transactions. It is reminded that this structure, where influencers receive lifetime commissions from every user they bring to Bybit on transactions they make, with no upper limit, has been banned by the SPK. After the publication of Haberler.com's investigative reports, some influencers have hidden their social media accounts, but referral links are still actively used. Bybit, which has faced a €2.25 million fine in the Netherlands, a blacklist in France, and $1 million sanctions in India, this stance in Turkey constitutes a new chapter in its global tension with regulators.
BYBIT'S HEADQUARTERS IS IN THE SEYCHELLES
Bybit, continuing its operations under the name Bybit Technology Limited (formerly Bybit Fintech Limited), has its headquarters in the Seychelles, an offshore haven and Africa's smallest country. Turkish users trading on foreign platforms like Bybit, which is not on the SPK's list of active crypto asset service providers in Turkey, lack legal protection. In the event of an account freeze or fund block on an SPK-licensed exchange, users can directly apply to the SPK. On an unlicensed, foreign-based platform like Bybit, all these avenues are practically closed. Experts emphasize that initiating a legal process from Turkey against an unlicensed platform registered abroad is extremely difficult. No effective enforcement mechanism can be operated against fund blocks or account freezes; the user's only point of contact remains the platform's own support line.