Crypto exchange Bybit says it stopped hundreds of millions of dollars in suspected scam withdrawals using a new AI-based security system.
In a new press release outlining its 2025 Security Initiative, the Dubai-based exchange says it intercepted and recovered $300 million out of $500 million in flagged withdrawals in the fourth quarter alone, protecting more than 4,000 users.
Bybit says the system is built around a three-tier risk framework designed to intervene before funds leave the platform.
At the lowest level, the system uses data analysis to spot unusual patterns, such as many withdrawals going to the same new wallet address. In those cases, users receive automated surveys and risky addresses can be blacklisted.
At the medium level, accounts flagged through leaked credential databases or suspicious withdrawal addresses trigger real-time alerts during the withdrawal process. Users are prompted to pause and review the transaction, a step meant to counter common social engineering tactics.
At the highest level, when a wallet address is linked to confirmed scams such as “pig butchering” schemes, Bybit blocks the withdrawal in real time and enforces a mandatory one-hour cooling-off period.
The company says its AI tools identified 350 high-risk investment fraud addresses in the fourth quarter, helping shield 8,000 users from potential losses. It also says it blocked more than 3 million credential stuffing (account takeover) attempts over the course of 2025.
Bybit cites industry data from Chainalysis estimating that $17 billion in cryptocurrency was lost to scams and fraud in 2025.
Says David Zong, Head of Group Risk Control at Bybit,
“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.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.