Citadel-Backed Hidden Road to Halt Access to Bybit Amid KYC/AML Concerns

Citadel-Backed Hidden Road to Halt Access to Bybit Amid KYC/AML Concerns

Prime brokerage firm Hidden Road is set to discontinue offering its clients access to the Bybit cryptocurrency platform due to concerns over the exchange’s know-your-customer (KYC) and anti-money laundering (AML) procedures.

According to sources familiar with the situation, international prime broker Hidden Road plans to halt trading for its clients on Bybit. This decision stems from issues related to the exchange’s KYC and AML regulations. Although the exact timing of this suspension remains uncertain, sources indicate that Hidden Road notified its clients several weeks ago. Bybit has not yet commented publicly on the situation but assured Bloomberg that the exchange is committed to transparency and will provide updates as the review progresses.

This development follows a significant event in November 2023, when Coinbase notified some customers about a subpoena from the U.S. Commodity Futures Trading Commission (CFTC) concerning Bybit. The specifics of the information sought by the CFTC and the investigation’s broader scope remain undisclosed.

Hidden Road, founded in 2018 by Marc Asch, provides cross-margining and margin financing across cash, cleared derivatives, and over-the-counter swaps products, including prime brokerage services for cryptocurrency. The firm secured a $50 million Series A funding round in 2022, led by Castle Island Ventures. The round included investments from notable entities such as Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, and Coinbase Ventures.

Hidden Road’s move to cease offering access to Bybit underscores the increasing scrutiny and regulatory pressure on cryptocurrency exchanges to adhere to stringent KYC and AML standards.

Powered by Crypto Expert BD

Follow us on Twitter:

Join our Telegram channel:


No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *