David Zong, Head of Group Risk Control at Bybit, said the platform’s three tier risk monitoring system and industry intelligence partnerships helped protect over 4,000 users and block millions of credential attacks.
New Delhi, March 05, 2026: Cryptocurrency exchange Bybit has reported the results of its 2025 security initiative, revealing that more than $300 million in scam linked withdrawals were intercepted and recovered during the fourth quarter of 2025.
The announcement comes at a time when global cryptocurrency fraud remains a growing concern. According to a 2025 report by Chainalysis, nearly $17 billion in digital assets were lost worldwide to scams and fraud related activities during the year, highlighting the need for stronger risk monitoring across the digital asset ecosystem.
In response, Bybit introduced a Dynamic Risk Based Protection System aimed at identifying suspicious withdrawal behaviour before funds leave the platform. The system categorises withdrawal activity into three risk levels designed to detect potential scams and alert users in real time.
The first level functions as an early warning system. Bybit analyses behavioural patterns using large scale data heuristics to detect unusual activities such as repeated withdrawals directed to a newly created wallet address. In such cases the system deploys automated user surveys while also blacklisting addresses considered high risk.
The second level introduces real time alerts. Accounts linked to credential stuffing databases or suspicious withdrawal addresses trigger warnings during the withdrawal process. These alerts encourage users to pause and review the transaction, an approach intended to counter social engineering tactics that rely on urgency or emotional pressure.
The highest level activates immediate withdrawal blocking. Wallet addresses associated with confirmed fraud schemes, including investment scams known as pig butchering operations, are automatically restricted. The system also enforces a one hour cooling period to allow users additional time to verify the legitimacy of the transaction.
The initiative produced measurable results during 2025. Bybit reported that $300 million was intercepted and recovered from approximately $500 million in withdrawals flagged as suspicious during the final quarter of the year. More than 4,000 users were protected from potential losses and over 8,000 accounts were shielded from fraudulent withdrawals.
The platform also blocked more than three million credential stuffing attempts during the year. In addition, its monitoring systems identified 350 high risk investment fraud addresses and labeled 950 suspicious wallet addresses through a combination of automated detection and manual investigation. Cross chain forensic tracking further enabled the freezing of $4.32 million in assets linked to 335 fraud cases.
David Zong, Head of Group Risk Control at Bybit, said, “Our mission in 2025 was to transform risk control from a silent shield into an active, intelligent guardian. By integrating AI driven on chain monitoring with real time intelligence from industry partners like TRM, Elliptic and Chainalysis, we not only just 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.”
Through its Standardized Intelligence Hub, Bybit integrates monitoring signals from blockchain analytics companies to identify high risk transactions and suspicious activity across deposits and withdrawals. The exchange also uses cross chain tracing technologies to track illicit funds moving across bridges and mixers.
As cryptocurrency adoption continues to expand in India and globally, exchanges are facing increasing expectations to implement advanced security and risk management systems. Bybit said it will continue refining its AI detection capabilities while strengthening cooperation with industry intelligence networks to improve protection across the digital asset ecosystem.
Founded in 2018, Bybit is one of the largest cryptocurrency exchanges by trading volume and serves more than 70 million users globally. The platform focuses on Web3 infrastructure and works with blockchain protocols to develop decentralized finance services while providing trading tools, custody solutions and blockchain based applications.
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