Dubai, United Arab Emirates, February 27, 2026, Chainwire
BybitThe world’s second-largest cryptocurrency exchange by trading volume, today revealed the comprehensive results of its Security Initiative 2025. Bybit has implemented an industry-leading multi-layer defense architecture that has successfully protected thousands of users and set a new benchmark for proactive security in the digital asset space. In 2025, $17 billion in cryptocurrency was lost due to scams and fraud, according to a Chainalysis report.
Redefining Industry Standards: The Triple-Level Fraudulent Withdrawal Defense Framework
To go beyond reacting to scams once the damage is done, Bybit has pioneered a dynamic risk-based protection system that intervenes before money is lost. The system divides possible scam situations into three risk levels. Each level has a different response, designed to protect users’ withdrawal process while keeping the platform fluid 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 singular address, Bybit implements automated surveys. This knowledge allows the Risk Operations team to preventively blacklist dangerous destinations.
Level 2: Real-time alert (Medium risk): For accounts flagged via credential stuffing databases (cross-referencing leaked data from the external web) or suspicious withdrawal addresses, Bybit triggers real-time alerts during withdrawal. The alert encourages users to pause and review the withdrawal, a step intended to counter social engineering tactics that rely on urgency or emotional pressure.
Level 3: Immediate Lock and Cooldown (High Risk): For wallet addresses linked to confirmed scams, including so-called “pig slaughter” investment schemes, Bybit implements a real-time withdrawal block along with a mandatory one-hour cooling-off period, providing a vital window for users to compose themselves and verify the transaction.
Impact and key metrics for 2025: in numbers
The effectiveness of these measures implemented in the fourth quarter of 2025 has yielded unprecedented results for user security:
- Recovery and Scam Prevention in Q4: Of the $500 million in flagged withdrawals, Bybit successfully intercepted and recovered $300 million, protecting the life savings of over 4,000 users.
- AI-powered detection in Q4: Bybit’s proprietary AI algorithms identified 350 high-risk investment fraud addresses through on-chain data, protecting 8,000 users from potential withdrawal losses.
- Infrastructure resilience in 2025: The platform successfully thwarted more than 3 million credential stuffing (account takeover) attempts by hackers.
- On-chain surveillance in Q4: The system automatically tagged 350 addresses and manually tagged 600 addresses through ticket operations, saving $1 million in imminent fraud losses.
A collaborative strength: synergy between industry and government
Bybit believes that security is not a competitive advantage but a collective responsibility. Our 2025 strategy focused heavily on integrating external intelligence:
“Our mission in 2025 was to transform risk control from a ‘silent shield’ to an active and intelligent guardian,” he said. David Zong, head of group risk control at Bybit. “By integrating AI-powered on-chain monitoring with real-time intelligence from industry partners like TRM, Elliptic, and Chainalysis, we are not only protecting Bybit users, but also helping to map the DNA of fraudulent networks. We are sharing these standardized monitoring tracks 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, more open and equal ecosystem for everyone. 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, allowing builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.
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Contact
head of public relations
Tony Au
Bybit
[email protected]
