Bybit Intercepts $300M in Impersonalization, Scams and Frauds via New AI-Driven Risk Framework in 2025 Security Milestone

Today, Bybit, the second-largest cryptocurrency exchange globally by trading volume, unveiled the full findings of its 2025 Security Initiative. Bybit has successfully safeguarded thousands of users and established a new standard for proactive security in the digital asset space by implementing an industry-leading, multi-layered protection architecture. According to a Chainalysis analysis, scams and frauds cost $17 billion in bitcoin in 2025.

Redefining Industry Standards: The Fraudulent Defense Framework for Triple-Tier Withdrawal

Bybit has developed a Dynamic Risk-Based security system that intervenes before money is lost, going beyond responding to fraud after the damage has been done. The system uses three risk levels to categorize potential fraud scenarios. Every level has a unique reaction that is intended to safeguard users withdrawal procedures while maintaining platform functionality for regular trading activity.

Tier 1: Early Warning (Low Risk): Bybit uses automated surveys and big-data heuristics to find anomalous trends, such as bulk withdrawals to a single new address. The Risk Operations team can proactively prohibit hazardous locations thanks to this information.

Tier 2: Real-time Alert (Medium Risk): Bybit initiates real-time notifications during withdrawals for accounts identified by credential-stuffing databases (which cross-reference leaked data from external web sources) or questionable withdrawal addresses. In an effort to thwart social engineering techniques that depend on haste or emotional pressure, the notice prompts users to take a moment to reconsider the withdrawal.

Tier 3: Immediate Blocking and Cooling-off (High Risk): Bybit uses Real-time Withdrawal Blocking in conjunction with a mandatory One-Hour Cooling-Off Period for wallet addresses connected to verified scams, such as so-called “pig butchering” schemes. This gives users a crucial window of time to gather their thoughts and confirm the transaction.

2025 Impact & Key Metrics: By the Numbers

The effectiveness of these measures implemented in Q4 2025 has yielded unprecedented results for user safety:

• Scam Recovery & Prevention in Q4: Out of $500 million in flagged withdrawals, Bybit successfully intercepted and recovered $300 million, protecting the life savings of over 4,000 users.
• AI-Driven Detection in Q4: Bybits proprietary AI algorithms identified 350 high-risk fraud addresses via on-chain data, shielding 8,000 users from potential withdrawal losses.
• Infrastructure Resilience in 2025: The platform successfully thwarted over 3 million credential stuffing (account takeover) attempts by hackers.
• On-Chain Vigilance in Q4: The system auto-labeled 350 addresses and manually tagged 600 addresses through ticket operations, saving $1 million in imminent fraud losses.