Bybit’s 2025 Security Initiative Intercepts $300M in Crypto Scams Using AI Framework

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced significant achievements from its 2025 Security Initiative. The initiative, detailed here, highlights the implementation of a multi-layered defense architecture that intercepted $300 million in scams and frauds.

In 2025, the cryptocurrency industry saw $17 billion lost to scams and frauds, according to Chainalysis. Bybit’s new AI-driven risk framework aims to set a new benchmark for proactive security in the digital asset space.

Dynamic Risk-Based Protection System

Bybit’s security framework introduces a Dynamic Risk-Based protection system, which categorizes potential scam situations into three levels of risk. Each level has a tailored response to protect users during the withdrawal process while maintaining smooth trading operations.

Tier 1, the Early Warning stage, uses big-data heuristics to identify unusual patterns, such as mass withdrawals to a new address. Automated surveys help the Risk Operations team preemptively blacklist risky destinations.

Tier 2, Real-time Alert, targets accounts flagged through credential stuffing databases or suspicious withdrawal addresses. Users receive alerts during withdrawals, encouraging them to pause and review transactions to counter social engineering tactics.

Tier 3, Immediate Blocking and Cooling-off, is for wallet addresses linked to confirmed scams. Bybit implements real-time withdrawal blocking and a mandatory one-hour cooling-off period, allowing users to verify transactions.

Impact and Key Metrics

The measures implemented in Q4 2025 have shown significant results. Bybit intercepted and recovered $300 million from $500 million in flagged withdrawals, protecting over 4,000 users. The AI algorithms identified 350 high-risk investment fraud addresses, shielding 8,000 users from potential losses.

Bybit’s platform thwarted over 3 million credential stuffing attempts, and its system auto-labeled 350 addresses while manually tagging 600, saving $1 million in imminent fraud losses.

Industry Collaboration and Future Outlook

Bybit emphasizes that security is a collective responsibility. The 2025 strategy focused on External Intelligence Integration, collaborating with industry partners like TRM, Elliptic, and Chainalysis. David Zong, Head of Group Risk Control at Bybit, stated, “Our mission in 2025 was to transform risk control from a ‘silent shield’ into an active, intelligent guardian.”

Bybit’s efforts include a standardized intel hub for real-time identification of risky transactions and end-to-end holistic cross-chain tracing, securing asset freezes totaling $4.32 million for 335 fraud victims.

Why This Matters: Impact, Industry Trends & Expert Insights

Bybit’s 2025 Security Initiative has successfully intercepted $300 million in crypto scams using an AI-driven risk framework, highlighting a significant advancement in cryptocurrency security measures.

Recent industry reports indicate that AI-enhanced fraud detection and scam prevention have become major trends in cryptocurrency security. This aligns with Bybit’s efforts to enhance their security infrastructure using AI, demonstrating a proactive stance in combating rising crypto scams.

As per insights from TRM Labs, AI’s dual role in crypto fraud highlights its potential to scale scams while also enabling advanced defensive tools for prevention. This supports Bybit’s initiative to implement AI-driven risk management systems, reinforcing the importance of advanced technology in safeguarding digital assets.

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