In a significant victory against crypto fraud, Bybit has announced that its AI-driven risk monitoring system prevented over $300 million in suspicious withdrawals in the fourth quarter of 2025. The system, designed to detect and block malicious transactions before they are completed, flagged about $500 million in withdrawal requests and protected over 4,000 users from potential losses.
AI-Driven Fraud Prevention
Bybit’s head of group risk control, David Zong, revealed that the $300 million total includes funds that users voluntarily canceled after receiving real-time risk alerts. “Because the withdrawals were stopped prior to completion, the funds did not require recovery or reimbursement. They remained in users’ accounts at all times,” Zong explained.
Identifying High-Risk Addresses
The system also identified 350 high-risk investment fraud addresses, shielding 8,000 users from potential withdrawal losses during the previous quarter. Additionally, Bybit thwarted over three million credential stuffing attacks attempted by hackers throughout 2025.
The Broader Impact on the Crypto Industry
The importance of proactive security measures in the crypto industry cannot be overstated. According to a recent report, cryptocurrency hacks resulted in $3.4 billion in losses during 2025, with large crypto entities increasingly targeted by hackers. Bybit’s AI-assisted system demonstrates the effectiveness of real-time, AI-powered threat monitoring in mitigating these risks.
How the System Works
Bybit’s internal risk detection system uses exchange data to flag unusual patterns such as mass withdrawals. Withdrawals flagged as high-risk are either issued a warning prompt or blocked in real-time, depending on the severity of the case. The triple-tied theft prevention framework relies on this data to preemptively blacklist dangerous destination addresses, ensuring that users’ funds remain secure.
Industry Experts Weigh In
Cybersecurity experts have long called for the widespread adoption of real-time, AI-powered threat monitoring systems to combat cybercrime. Deddy Lavid, co-founder and CEO of blockchain cybersecurity company Cyvers, emphasized the importance of AI-based anomaly detection. “Implementing AI-based anomaly detection can significantly enhance the industry’s ability to defend against hackers infiltrating companies to steal funds or sensitive data,” Lavid told Cointelegraph last year.
Looking Forward
As the crypto industry continues to grow, the need for robust security measures becomes increasingly critical. Bybit’s success in preventing $300 million in potential scams sets a high standard for other exchanges. The company’s commitment to user protection through advanced AI technologies is a promising step towards a more secure and trustworthy cryptocurrency ecosystem.
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