Dubai, UAE, February 27, 2026 — Bybit, the world’s second-largest cryptocurrency exchange by trading volume, today published the findings of its 2025 Security Initiative. Against an industry backdrop in which Chainalysis reported $17 billion lost to scams and frauds in 2025, Bybit adopted a layered defense designed to stop theft before funds leave the platform.
Three-tier Withdrawal Fraud Defense
To shift from reactive remediation to proactive prevention, Bybit rolled out a dynamic, risk-based protection system that classifies suspicious withdrawal activity into three tiers and applies tailored responses to protect users while minimizing friction for legitimate customers.
– Tier 1 — Early Warning (Low Risk): Large-scale data heuristics detect anomalous patterns, such as many withdrawals to a single newly created address. Automated surveys and intelligence let Risk Operations preemptively blacklist dangerous destinations.
– Tier 2 — Real-time Alert (Medium Risk): Accounts flagged by credential-stuffing feeds or linked to suspicious withdrawal addresses receive in-the-moment alerts prompting users to pause and review, countering urgency-driven social engineering.
– Tier 3 — Immediate Blocking and Cooling-off (High Risk): Withdrawals to addresses tied to confirmed scams, including pig-butchering schemes, are blocked in real time and subject to a mandatory one-hour cooling-off period so users can verify activity and recover if targeted.
2025 Impact and Key Metrics
Measures deployed in Q4 2025 delivered measurable protection for users:
– Intercepted and recovered $300 million out of $500 million in flagged Q4 withdrawals, safeguarding funds for more than 4,000 users.
– Proprietary AI identified 350 high-risk investment-fraud addresses via on-chain analysis, shielding roughly 8,000 users from potential withdrawal losses in Q4.
– The platform defended against over 3 million credential-stuffing (account takeover) attempts across 2025.
– In Q4, on-chain monitoring auto-labeled 350 addresses and manual ticket tagging covered 600 more, preventing about $1 million in imminent fraud losses.
Collaboration with Industry and Authorities
Bybit emphasizes that security is a collective responsibility. Its 2025 approach combined internal detection with external intelligence from industry partners and law enforcement to strengthen signals and help disrupt fraud networks.
“Our goal in 2025 was to evolve risk control from a passive shield into an active, intelligent guardian,” said David Zong, Head of Group Risk Control at Bybit. “By combining AI-driven on-chain monitoring with real-time feeds from partners such as TRM, Elliptic and Chainalysis, we protect our users and contribute to mapping the behavior of fraudulent networks. Sharing standardized monitoring indicators across the ecosystem makes everyone safer.”
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving a global community of more than 80 million users. Founded in 2018, Bybit focuses on Web3 and partners with blockchain protocols to provide infrastructure and drive on-chain innovation. The platform emphasizes secure custody, diverse marketplaces, an intuitive user experience, and advanced blockchain tools to bridge TradFi and DeFi. Learn more at Bybit.com.
Press and Media
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Media contact
Tony Au
Head of PR, Bybit
[email protected]