Crypto exchange Bybit says a newly deployed AI-assisted fraud detection system blocked or disrupted more than $300 million in suspected scam-related withdrawals during the fourth quarter of 2025.
According to the company, the system flagged roughly $500 million in withdrawal attempts over the three-month period. More than 4,000 users were protected after receiving real-time risk alerts or having transactions blocked before funds left the platform.
Bybit’s risk control team said much of the reported $300 million reflects withdrawals that users voluntarily canceled after seeing on-screen warnings. Because the transactions were halted before completion, the funds remained in customer accounts and did not require recovery efforts or reimbursements.
Fraud Prevention Framework Targets High-Risk Activity
The exchange also identified 350 high risk investment fraud addresses, helping shield approximately 8,000 users from potential losses. In addition, Bybit reported thwarting over three million credential-stuffing attacks throughout 2025.
The platform’s risk framework analyzes internal transaction data to detect unusual patterns such as mass withdrawals or suspicious destination addresses. Depending on severity, the system either issues warning prompts or blocks transactions in real time.
With crypto related hacks totaling an estimated $3.4 billion in losses in 2025, exchanges are increasingly shifting from post-incident recovery toward proactive, AI-driven threat prevention strategies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.