Bybit faces backlash as users report frozen accounts amid growing compliance concerns

Bybit faces criticism as users report their accounts frozen for over 20 days, raising compliance concerns and questions about the exchange's practices.

Watching your funds locked away without explanation is a nightmare scenario for any crypto trader. Unfortunately, it's becoming a harsh reality for many users of the Bybit exchange , who have reported frozen accounts for over 20 days. As complaints ramp up, compliance concerns are raising serious questions about the platform's operational practices. What’s Going On with Bybit Accounts? Beginning around May 1, a wave of users took to forums and social media to express their frustrations over unresponsive customer support and indefinite account freezes. In one striking case, a user saw approximately 14,000 USDT stuck for over three weeks before the funds were finally released—only for the account to be permanently closed thereafter. Why Are Accounts Getting Frozen? Users have consistently reported their accounts being frozen without any clear reason, often under the vague term of “compliance checks.” This lack of transparency has heightened tensions and fueled user protests. Platforms like Reddit and Trustpilot have also seen a surge in complaints, highlighting this issue as a significant cause for concern among Bybit’s user base. Is This a New Issue? This isn’t a recent development for Bybit users. Historical complaints from 2025 echo this sentiment, with others recalling similar freezing incidents coupled with a frustratingly unresponsive support team. While the platform has claimed to bolster its compliance and security measures since a major hack in February 2025, user confidence continues to erode. What’s the Impact of the February 2025 Hack? The February hack raised alarms about Bybit's security, leading the exchange to implement tougher compliance measures. However, instead of reassuring users, these measures have contributed to users feeling more vulnerable, as significant funds are occasionally locked without a clear path to resolution or explanation. How Are Competitors Reacting? With Bybit's ongoing struggles, competing exchanges have started leveraging thi