Citadel Securities-backed broker Hidden Roads halts access to Bybit

Prime brokerage firm Hidden Roads is preparing to stop offering clients access to the Bybit crypto platform due to a dispute over the exchange’s KYC/AML procedures.

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

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

In November 2023, Coinbase notified some of its customers about a Bybit-related subpoena from the U.S. Commodity Futures Trading Commission (CFTC). Details of the information or documents sought by the CFTC and the broader scope of the investigation have not been disclosed at this time.

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

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