Dubai, UAE, February 27, 2026 — Bybit, the world’s second-largest cryptocurrency exchange by trading volume, today released the results of its 2025 Security Initiative. Facing an industry backdrop in which Chainalysis reported $17 billion lost to scams and frauds in 2025, Bybit implemented a multi-layered defense architecture designed to stop theft before funds leave the platform.
The Triple-Tier Withdrawal Fraud Defense Framework
To move from reactive remediation to proactive prevention, Bybit deployed a Dynamic Risk-Based protection system that classifies suspicious activity into three tiers with tailored responses that protect withdrawals while minimizing disruption for legitimate users.
– Tier 1 — Early Warning (Low Risk): Big-data heuristics detect unusual patterns (for example, mass withdrawals to a single new address). Automated surveys and insights allow Risk Operations to preemptively blacklist dangerous destinations.
– Tier 2 — Real-time Alert (Medium Risk): For accounts flagged via credential-stuffing databases or linked to suspicious withdrawal addresses, Bybit issues real-time alerts during withdrawal to encourage users to pause and review, countering social engineering that leverages urgency.
– Tier 3 — Immediate Blocking and Cooling-off (High Risk): For wallet addresses tied to confirmed scams, including “pig butchering” schemes, Bybit applies real-time withdrawal blocking plus a mandatory one-hour cooling-off period so users can verify and recover if targeted.
2025 Impact & Key Metrics
Measures deployed in Q4 2025 produced significant results for user safety:
– Intercepted & recovered $300 million out of $500 million in flagged Q4 withdrawals, protecting the savings of over 4,000 users.
– Proprietary AI identified 350 high-risk investment-fraud addresses via on-chain data, shielding 8,000 users from potential withdrawal losses in Q4.
– The platform prevented more than 3 million credential-stuffing (account takeover) attempts across 2025.
– On-chain vigilance in Q4 auto-labeled 350 addresses and manually tagged 600 via ticket operations, averting roughly $1 million in imminent fraud losses.
Industry and Government Collaboration
Bybit emphasizes that security is a shared responsibility. Its 2025 strategy integrated external intelligence from industry partners and law enforcement to strengthen detection and disrupt fraud networks.
“Our mission in 2025 was to transform risk control from a ‘silent shield’ into an active, intelligent guardian,” said David Zong, Head of Group Risk Control at Bybit. “By integrating AI-driven on-chain monitoring with real-time intelligence from partners like TRM, Elliptic and Chainalysis, we not only protect Bybit users but also help map the DNA of fraudulent networks. We are sharing these standardized monitoring clues across the ecosystem because a safer industry for one is a safer industry for all.”
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving a global community of over 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, intuitive user experience, and advanced blockchain tools to bridge TradFi and DeFi. Discover more at Bybit.com.
Press and Media
Bybit Press: https://www.bybit.com/en/press
Bybit Communities and Social Media: https://www.bybit.com/en-us/promo/global/communities/
Media contacts
Head of PR
Tony Au
Bybit
[email protected]
