Dubai, United Arab Emirates, February 27, 2026, Chainwire
Bybit, the world’s second largest cryptocurrency exchange by trading volume, today revealed the full results of its 2025 Security Initiative. Bybit implemented a cutting-edge, multi-layered defense architecture that successfully protected thousands of users and set a new benchmark for proactive security in digital assets. In 2025, $17 billion in cryptocurrency was lost to scams and fraud, according to a report from Chainalysis.
Redefining Industry Standards: The Three-Tier Takedown Fraud Defense Framework
To go beyond reacting to scams after the damage has been done, Bybit has developed a dynamic, risk-based protection system that intervenes before money is lost. The system divides potential scam situations into three risk levels. Each level has a different response – designed to protect the user withdrawal process while keeping the platform smooth for normal trading activity.
Level 1: Early warning (low risk): Using big data heuristics to identify unusual patterns, such as mass withdrawals to a new single address, Bybit deploys automated investigations. This information allows the Risk Operations team to pre-emptively blacklist dangerous destinations.
Level 2: Real-time alert (medium risk): For accounts reported via credential stuffing databases or suspicious withdrawal addresses, Bybit triggers real-time alerts upon withdrawal. The alert encourages users to pause and review the opt-out, a step aimed at countering social engineering tactics that rely on urgency or emotional pressure.
Level 3: Immediate blocking and reflection (high risk): For wallet addresses linked to confirmed scams, including so-called “pig butchering” investment schemes, Bybit implements real-time withdrawal blocking coupled with a mandatory one-hour cooling-off period, providing a vital window for users to regain their composure and verify the transaction.
2025 impact and key indicators: in figures
The effectiveness of these measures implemented in the fourth quarter of 2025 has yielded unprecedented results in user security:
- Q4 Scam Recovery and Prevention: Out of $500 million in reported withdrawals, Bybit successfully intercepted and recovered $300 million, protecting the savings of over 4,000 users.
- AI-powered detection in Q4: Bybit’s proprietary AI algorithms identified 350 high-risk investment fraud addresses via on-chain data, protecting 8,000 users from potential withdrawal losses.
- Infrastructure Resilience in 2025: The platform has successfully thwarted more than 3 million credential stuffing attempts by hackers.
- On-chain vigilance in Q4: The system automatically tagged 350 addresses and manually tagged 600 addresses via ticket operations, saving $1 million in looming fraud losses.
A collaborative fortress: synergy between industry and government
Bybit believes that security is not a competitive advantage but a collective responsibility. Our 2025 strategy has focused heavily on the integration of external intelligence:
“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 surveillance with real-time intelligence from industry partners like TRM, Elliptic and Chainalysis, we not only protect Bybit users, but also help map the DNA of fraudulent networks. We share these standardized surveillance indices across the ecosystem, because a safer industry for one is a safer industry for all.”
#Bybit / #TheCryptoArk
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 is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for all. With a strong focus on Web3, Bybit strategically partners with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, enabling builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.
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Tony Au
Bybit
media@bybit.com
