🌎 Hidden Road to Halt Bybit Access Over KYC/AML Concerns

Prime brokerage firm Hidden Road is set to stop offering its clients access to the Bybit crypto platform due to a disagreement over the exchange’s KYC/AML procedures.

International prime broker Hidden Road is reportedly preparing to halt trading for its clients on cryptocurrency exchange Bybit. The move is understood to be in response to concerns regarding the exchange’s know-your-customer (KYC) and anti-money laundering (AML) regulations.

While the exact timing of the suspension remains uncertain, sources indicated that Hidden Road had notified its clients “a few weeks ago.” Bybit has not publicly addressed the matter, but a spokesperson mentioned that the exchange is committed to transparency and will provide further updates as the review progresses.

In November 2023, Coinbase informed some of its customers of a subpoena from the U.S. Commodity Futures Trading Commission (CFTC) concerning Bybit. The specifics of the information or documents sought by the CFTC, as well as the investigation’s broader scope, remain undisclosed thus far.

Founded in 2018 by Marc Asch, Hidden Road offers cross-margining and margin financing across cash, cleared derivatives, and over-the-counter swaps products. The firm also offers prime brokerage with crypto.

In 2022, Hidden Road secured a $50 million Series A funding round led by Castle Island Ventures, with participation from other investors, including Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, and Coinbase Ventures.