Bybit AI-Powered Fraud Prevention System Blocked $300M in Suspected Scam Withdrawals During Q4 2025

Bybit, one of the world's largest cryptocurrency exchanges by trading volume, announced that its proprietary AI-assisted risk monitoring system successfully prevented or disrupted more than $300 million in suspected fraudulent withdrawal requests during the fourth quarter of 2025. The exchange's internal risk detection framework, deployed in mid-2025, aims to identify and block malicious transactions before funds leave the platform, representing a shift from reactive recovery to preemptive prevention in cryptocurrency security. According to the company's official blog post, the system flagged approximately $500 million in withdrawal requests during the quarter, with over 4,000 users receiving real-time risk alerts or having transactions blocked outright. Bybit's Head of Group Risk Control, David Zong, stated that a significant portion of the $300 million in prevented losses reflects user-initiated cancellations after receiving warnings, meaning funds remained in accounts without requiring post-hoc recovery or reimbursement procedures. The platform also identified and blacklisted 350 high-risk investment fraud addresses during Q4 2025, shielding approximately 8,000 users from potential withdrawal losses. Additionally, the system successfully thwarted over three million credential stuffing attacks throughout 2025, where hackers attempted to gain unauthorized access to user accounts using stolen login credentials. The cryptocurrency industry experienced an estimated $3.4 billion in losses due to hacks and exploits during 2025, with threat actors increasingly targeting large centralized exchanges and DeFi protocols. Bybit's proactive approach aligns with broader industry calls for real-time, AI-powered threat monitoring systems to combat sophisticated cybercrime. Cybersecurity experts note that implementing anomaly detection may help defend against hackers infiltrating companies to steal funds or sensitive data.