Prime Brokerage Firm Hidden Roads to Cease Bybit Access Over KYC/AML Dispute


Hidden Roads, an international prime brokerage firm backed by Citadel Securities, is reportedly planning to suspend trading for its clients on the Bybit cryptocurrency exchange. This move comes in response to concerns over Bybit’s know-your-customer (KYC) and anti-money laundering (AML) procedures, according to sources familiar with the situation as reported by Bloomberg.

The exact timing of the suspension remains uncertain, but sources mentioned that Hidden Roads had informed its clients about this decision “a few weeks ago.” While Bybit has not officially commented on the matter, a spokesperson stated to Bloomberg that the exchange is “committed to transparency and will provide further updates as the review progresses.”

In November 2023, Coinbase notified a group of its customers about a subpoena from the U.S. Commodity Futures Trading Commission (CFTC) regarding Bybit. The details of the information or documents requested by the CFTC, along with the broader scope of the investigation, have not been disclosed thus far.

Established in 2018 by Marc Asch, Hidden Roads provides cross-margining and margin financing services for cash, cleared derivatives, and over-the-counter swaps products. Additionally, the company offers prime brokerage services with a focus on cryptocurrencies.

During 2022, Hidden Road successfully raised a $50 million Series A funding round with Castle Island Ventures as the lead investor. Other participants in the funding round included Citadel Securities, FTX Ventures, Uncorrelated Ventures, Greycroft, XBTO Humla Ventures, Wintermute, and Coinbase Ventures.

Comments

comments


What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win

0 Comments

Your email address will not be published.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