Bybit intercepts $300M in scams in Q4 2025 through AI-driven risk framework

Bybit's 2025 Security Initiative successfully intercepted $300M in scams during Q4, showcasing its commitment to user safety through an advanced AI-driven risk framework.

In a bold move to enhance user safety, the Bybit exchange has unveiled its impressive results from the 2025 Security Initiative, announcing that it intercepted and recovered a staggering $300 million in impersonation scams and fraudulent withdrawals during the fourth quarter of 2025. This revelation, shared with Finbold on February 27, highlights Bybit's commitment to combating fraud within the crypto space.

How Did Bybit Achieve This Major Milestone?

Bybit's success is rooted in the implementation of a multi-layered defense architecture aimed at preventing fraud before it results in financial losses. The exchange's announcement underscores a broader effort to create a safer investing environment in the crypto world. With $17 billion in cryptocurrency lost to scams and fraud globally in 2025, according to Chainalysis data, Bybit's proactive measures are timely and essential.

What Is Bybit's Triple-Tier Withdrawal Defense Framework?

At the heart of Bybit's security operations is its innovative triple-tier withdrawal defense framework. This dynamic risk-based protection system is designed to assess withdrawal requests and categorize them into three distinct risk levels, each with its own course of action. The system's approach includes:

Low-risk: Automated surveys are deployed when unusual patterns are detected, such as large withdrawal volumes to newly created addresses, with potential blocklisting of suspicious destinations.
Medium-risk: If accounts are flagged through leaked credential databases or suspicious addresses, users receive real-time alerts during the withdrawal process, allowing them to review transactions before completion.
High-risk: For wallet addresses linked to confirmed scams, Bybit implements real-time withdrawal blocking and enforces a mandatory one-hour cooling-off period.

What Are the Outcomes of Bybit's Enhanced Security Measures?

Thanks to these robust measures, Bybit reported remarkable user protection results during the last quarter of 2025. Out of $500 million in flagged withdrawals, an impressive $300 million was intercepted and recovered, protecting over 4,000 users. Additional successful initiatives included:

Identification of 350 high-risk investment fraud addresses, helping safeguard 8,000 users from potential losses.
Blocking over 3 million credential stuffing attempts throughout the year.
Automatic labeling of 350 suspicious addresses and manual tagging of an additional 600 addresses, preventing around $1 million in imminent fraud losses.
Cross-chain tracing efforts that led to asset freezes totaling $4.32 million for 335 fraud victims.

How Is Bybit Collaborating with Industry Partners?

Bybit is taking its security operations a step further by collaborating with external intelligence providers. Partnerships with firms like TRM, Elliptic, and Chainalysis have allowed Bybit to integrate advanced monitoring capabilities into its security framework. This collaboration is designed not only to enhance the safety of Bybit users but also to contribute to the greater cryptocurrency ecosystem.

“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 industry partners... we help map the DNA of fraudulent networks.”

What’s Next for Bybit?

Looking ahead, Bybit plans to continue elevating its fraud prevention and user safety measures. The exchange has made it clear that a truly secure industry is achieved when all participants collaborate. With the threat of scams and fraud ever-present in the crypto world, Bybit's initiatives are crucial for ensuring a safe trading environment, allowing traders to focus on their investment strategies without fear of falling victim to scams.

Bybit intercepted and recovered $300 million in fraudulent activities in Q4 2025.
Implemented a triple-tier withdrawal defense framework enhancing user transaction safety.
Collaborated with industry intelligence partners to strengthen monitoring capabilities.
Blocked over 3 million credential stuffing attempts to protect users.

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