Bybit To Terminate Web3 Wallet Services On May 31, Urges Users To Redeem And Transfer Assets
In Brief
Bybit announced that all Web3 wallet services, including the Cloud Wallet and Non-Custodial Wallet, will be discontinued as of May 31st.
Cryptocurrency exchange Bybit announced that all Web3 wallet services, including the Cloud Wallet and Non-Custodial Wallet, will be discontinued as of May 31st. Users who currently have tokens or non-fungible tokens (NFTs) stored in these wallets are advised to begin transferring their digital assets without delay.
Any staked assets, whether in fixed-term or flexible staking formats, should be redeemed and moved to a different wallet address prior to the shutdown date. The company has indicated that assets can be directed to the Bybit Mnemonic Wallet, which is expected to offer more consistent accessibility and enhanced asset management features.
This can be done by using the “Send” option in the Bybit Web3 Wallet to relocate tokens or NFTs to either the Mnemonic Wallet or another compatible on-chain wallet, such as MetaMask.
Users should confirm that their wallet has adequate gas fees to finalize the transaction, with additional gas top-ups possible through deposit if necessary. Once transfers are completed, it is advisable to delete the original wallet address from any external wallets or exchanges to prevent unintentional deposits to wallets that will no longer be active.
Why Is Bybit Shutting Down Its Web3 Wallet Services?
The Bybit Cloud Wallet is a custodial digital wallet integrated within the Bybit platform, designed to offer users a seamless and user-friendly experience in managing their cryptocurrencies. As a custodial wallet, Bybit holds and secures the private keys on behalf of the user, eliminating the need for individuals to manage these sensitive credentials themselves
The Bybit Keyless Wallet, in contrast, operates as a non-custodial option utilizing Multi-Party Computation (MPC) technology, which increases security by distributing control of the private key. This approach separates the key into two parts: one maintained by the user and the other by Bybit. The Keyless Wallet is accessible exclusively via the Bybit mobile application and is designed to offer greater autonomy without compromising ease of use.
The closure of Web3 wallet services aligns with a broader strategic adjustment aimed at strengthening core blockchain functionalities and reinforcing overall security protocols. This direction follows an internal review initiated after a major security incident.
In February 2025, the platform encountered a substantial security breach that led to the unauthorized removal of assets valued at roughly $1.4 billion. The event triggered a reassessment of the company’s operational framework and cybersecurity practices.
Disclaimer
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
