Apple KYC Glitch on Bybit Freezes $100K; Executive Action Ensures Swift Resolution

Bybit Moves Swiftly on KYC Flaw Linked to Apple ID Login Bybit moved swiftly to fix an unprecedented KYC verification error linked to Apple ID logins that rendered an individual inaccessible to nearly $100,000 worth of crypto. The issue prompted the executive team at Bybit to act, both symptomatic of the vulnerability of centralized platforms as well as the power of crypto community pressure. A One-Time Technical Issue Begets Swift Action On 18th May, the Bybit China Team made a declaration that some users experienced withdrawal issues caused by KYC operations upon logging in via Apple ID. The firm immediately launched an internal investigation and involved various departments — like Chief Operating Officer Helen Liu, customer support, risk control, and technology teams — to resolve the issue. Based on Bybit, the impacted account’s KYC data was not touched and money was never in danger. The company labeled it as “a solo instance impacting one individual user, not a systemic one.” Influencer Steps In to Champion Retail Investor The issue came to light after Chinese-speaking crypto influencer EnHeng reported the issue on X (previously Twitter). He noticed a post on a group chat about a user not being able to access due to an Apple ID bug on Bybit. After confirming the issue, he contacted the exchange. Bybit’s employees allegedly acted quickly, unblocking the user account. EnHeng then stated, “This incident really made me feel the value of having influence,” pointing to the necessity to use one’s voice to stand for retail investors in a marketplace sometimes skewed in the direction of institutional participants. Account Locks Prevalent Throughout the Industry Incidental loss of access is not uncommon in the crypto ecosystem , especially on security incidents or compliance audits. Phemex halted withdrawals earlier this year after it discovered nearly $30 million of suspicious withdrawals, and Mudrex halted withdrawals due to compliance updates. In extreme situations, actions are performed on law enforcement’s behalf. For example, last year, OKX and other exchanges froze accounts of Tornado Cash and sanctioned entities. These stories underscore the crypto mantra: “Not your keys, not your coins.” Those who rely on centralized exchanges are nonetheless vulnerable to loss of access, making self-custody the talk of the town. Bybit’s rapid, executive-initiated response illustrates the ability of centralised exchanges to act quickly — particularly when those within a community amplify urgent issues. The experience does, however, illustrate the importance of robust access controls, user representation, and broader transparency for platforms holding user funds.

Source: BTC Pulse