Bybit Says It Blocked $300M in Scam Withdrawals in 2025 — Here’s How
Bybit blocked $300M in scam withdrawals in 2025, taking crucial steps to protect users amid soaring crypto fraud losses of $17 billion. Learn more about their strategy.
Crypto scams aren’t just a nuisance—they’re a multi-billion dollar problem. In fact, roughly $17 billion in cryptocurrency was lost to scams and fraud in 2025 according to Chainalysis. With this backdrop, Bybit has taken significant steps to safeguard its users, reporting that it blocked $300 million in scam withdrawals last year. How did they achieve such impressive numbers? Let’s dive in.
What Changes Did Bybit Make to Combat Scams?
In a bold shift in strategy, Bybit transitioned from a reactive damage control approach to **proactive interception**. This change has been crucial in monitoring and preventing potential losses. In the 4th quarter of 2025 alone, Bybit flagged an astonishing $500 million in suspicious withdrawals, ultimately intercepting or recovering that $300 million to protect over 4,000 users. This wasn’t just a lucky break; it was a carefully engineered system.
What Is the Dynamic Risk-Based Protection System?
Bybit introduced what it refers to as a **Dynamic Risk-Based Protection System**, a robust three-tier withdrawal defense framework designed to act before funds leave the platform. Unlike traditional methods that freeze everything indiscriminately, this dynamic system tailors its response based on risk intensity.
Tier 1: Early Warning
This tier monitors for **low-risk anomalies**, such as clusters of withdrawals to newly created addresses. When flagged, it triggers automated surveys and behavioral checks. By leveraging big-data heuristics, the platform can identify emerging scam patterns, and even preemptively blacklists high-risk destinations.
Tier 2: Real-Time Alert
If an account raises suspicions—such as being linked to credential stuffing databases or dubious withdrawal addresses—a real-time warning is issued at the point of withdrawal. The aim is clear: disrupt the psychological urgency that scammers often rely on.
Tier 3: Immediate Block + Cooling-Off
This tier acts decisively against confirmed scam-linked addresses. Withdrawals tied to schemes—including notorious “pig butchering” scams—are blocked in real time. Notably, there's a mandatory one-hour cooling-off period, allowing users time to reassess before making irreversible transactions. This cooling-off feature has emerged as one of Bybit's hallmark safeguards in 2025.
What Do the Numbers Say?
The data for Q4 2025 provides deeper insight: Bybit identified 350 high-risk fraud addresses using AI-driven on-chain monitoring, shielding 8,000 users from possible losses. The exchange also successfully blocked over 3 million credential stuffing attacks and labeled more than 950 suspicious addresses through both automated and manual processes. Furthermore, Bybit secured $4.32 million in frozen assets for 335 fraud victims.
How Does AI and Shared Intelligence Enhance Security?
Bybit’s risk engine operates in synergy with outside expertise. The platform integrates real-time intelligence feeds from organizations like TRM Labs, Elliptic, and Chainalysis, cultivating a standardized risk-identification layer for both deposits and withdrawals. David Zong, Head of Group Risk Control at Bybit, emphasized, “Our mission is to transform risk control from a silent shield into an active, intelligent guardian.”
Why Is This Development Important?
As scams grow in psychological sophistication—particularly in long-form investment fraud—crypto exchanges are under increasing pressure to protect users without compromising their autonomy. Bybit’s comprehensive framework exemplifies a broader industry trend: a focus on security that prioritizes human behavior, on-chain analytics, and proactive intervention.
Key Takeaways
- Bybit blocked $300 million in scam withdrawals in 2025.
- They flagged $500 million in suspicious withdrawals in Q4 alone.
- The three-tier Dynamic Risk-Based Protection System actively intervenes to prevent fraud.
- Real-time alerts and automated behavioral checks are pivotal in safeguarding users.
- AI-driven collective intelligence enhances fraud detection across networks.
As crypto traders, it's essential to stay ahead of potential risks. Platforms such as Bybit are implementing incredible security measures to uphold user trust. If you're looking for competitive rates and a reliable trading experience, be sure to explore exchanges like Binance, Bybit, Bitget, OKX, and MEXC, where proactive measures like these are becoming the new standard in protecting trader assets.