Bybit Stops $300M in Crypto Scams with AI-Powered Fraud Defense in 2025

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Bybit Blocks $300 Million in Crypto Scams Using AI

In the last three months of 2025, Bybit successfully blocked $300 million worth of fake withdrawal attempts thanks to a new AI-powered security system. The exchange believes this advanced, multi-step defense approach represents a significant improvement in protecting users from crypto fraud.

Artificial Intelligence (AI) Shields Users as Bybit Sets New Security Benchmark in 2025

Bybit says it prevented $300 million in scam-related losses in the fourth quarter of 2025, marking a major milestone in its AI-driven security overhaul.

The exchange unveiled results from its 2025 Security Initiative, built around a Dynamic Risk-Based protection model. The framework introduces a three-tier withdrawal defense system designed to stop fraud before funds leave the platform.

The approach comes amid sobering industry data. According to Chainalysis, crypto scams and fraud cost investors $17 billion in 2025 alone.

Bybit protects users from withdrawal fraud with a three-level system. It categorizes risks as low, medium, or high. The system flags potentially fraudulent activity, like large withdrawals to unfamiliar accounts. Medium-risk situations trigger immediate alerts if an account has been involved in a data breach or is connected to a known suspicious wallet. If Bybit detects a high-risk situation, such as a connection to a ‘pig butchering’ scam, it will immediately stop the withdrawal and require a one-hour delay.

We’ve seen a real impact in protecting our users. Just in the last quarter, we identified $500 million in potentially fraudulent withdrawals, and were able to stop $300 million of those, safeguarding over 4,000 people. Our AI also flagged 350 addresses linked to scams, preventing potential losses for another 8,000 users.

Beyond withdrawals, Bybit blocked more than 3 million credential-stuffing attempts in 2025. Its cross-chain tracing tools froze $4.32 million tied to illicit activity, aiding 335 victims.

Bybit prioritized working with others instead of competing, and teamed up with companies like TRM Labs, Elliptic, and Chainalysis. They combined their fraud detection data to create a common warning system for the entire crypto industry.

As centralized exchanges face mounting regulatory scrutiny, proactive security may increasingly define competitive advantage. In a year marked by record fraud, prevention, not recovery, is emerging as crypto’s most valuable feature.

FAQ🔐

  • How much fraud did Bybit prevent in 2025?
    Bybit intercepted $300 million in flagged withdrawals during Q4 2025, protecting over 4,000 users from scams.
  • What is Bybit’s Triple-Tier Fraud Defense System?
    It is a risk-based withdrawal monitoring framework that categorizes threats into early warning, real-time alerts, and immediate blocking with a cooling-off period.
  • How does Bybit use AI in scam detection?
    Proprietary AI tools analyze on-chain data and suspicious login patterns to identify high-risk wallet addresses and prevent fraudulent withdrawals.
  • Why is this significant for global crypto users?
    With crypto fraud totaling $17 billion in 2025 worldwide, proactive AI-driven defenses help protect investors across major markets including North America, Europe, and Asia.

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2026-03-04 08:58