Prime brokerage firm Hidden Roads, backed by Citadel Securities, is set to stop offering clients access to the Bybit crypto platform due to disagreements over KYC/AML procedures. This move follows Hidden Road’s notification to clients a few weeks ago, though the exact timing is still unclear.
Hidden Road, founded by Marc Asch in 2018, provides cross-margining and margin financing, and in 2022, it raised $50 million in a Series A funding round. This round was led by Castle Island Ventures and included significant investors like FTX Ventures and Coinbase Ventures.
In November 2023, Coinbase informed some customers of a subpoena from the U.S. CFTC concerning Bybit, hinting at broader regulatory scrutiny. Bybit has committed to transparency and will update clients as its review progresses.
This suspension underscores the growing emphasis on stringent regulatory compliance within cryptocurrency exchanges, reflecting a pivotal shift towards enhanced security and trust in the crypto market.
