Bybit’s access suspended by Hidden Roads, broker backed by Citadel Securities
Hidden Roads, a prime brokerage firm, is planning to discontinue its clients’ access to the Bybit crypto platform due to a disagreement over the exchange’s KYC/AML procedures, according to sources familiar with the matter. The decision is a response to concerns about Bybit’s know-your-customer and anti-money laundering regulations. While the exact timing of the suspension is uncertain, Hidden Roads informed its clients of the move a few weeks ago. Bybit has not publicly commented on the situation, but a spokesperson stated that the exchange is committed to transparency and will provide updates as the review progresses.
In November 2023, Coinbase revealed that it had received a subpoena from the U.S. Commodity Futures Trading Commission (CFTC) concerning Bybit, although the details of the investigation have not been disclosed.
Hidden Roads, founded in 2018 by Marc Asch, offers cross-margining and margin financing for various financial products, including cash, cleared derivatives, and over-the-counter swaps. The firm also provides prime brokerage services for cryptocurrencies.
In 2022, Hidden Roads raised $50 million in a Series A funding round led by Castle Island Ventures, with participation from Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, and Coinbase Ventures.
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