Bybit Says AI Security Tools Helped Prevent $700 Million in Losses

Crypto exchange Bybit says AI-assisted auditing tools are finding high severity vulnerabilities up to five times more often than manual review, while slashing testing timelines from roughly two weeks to just two hours.

Thousands of Suspicious Withdrawals Blocked

Between January and mid-June, Bybit reported its AI system flagged over 30,000 suspicious withdrawal requests, protecting nearly 20,000 users from more than $700 million in potential losses. Reviews of flagged withdrawals averaged under five minutes each.

A Year After Crypto’s Largest Theft

The disclosure comes roughly a year after Bybit lost $1.46 billion in the largest crypto theft on record, linked to North Korea’s Lazarus Group. The exchange is now pursuing legal action and says its automated systems scanned nearly 1,500 public assets, uncovering over 100 high-severity flaws.

Industry-Wide Push for AI Defense Tools

The report arrives as other crypto firms turn to AI for security. BTCPay Server, recently hit by an attack draining Lightning nodes, said AI is shifting the balance between attackers and defenders. Major firms including Coinbase and Block recently signed a letter requesting stronger AI tools to match resourceful attackers.