Bybit blocks $300M in suspected fraud withdrawals in Q4
Crypto exchange Bybit stated that in the fourth quarter of 2025 it blocked or prevented withdrawals totaling more than $300 million linked to suspected fraud schemes. This became possible after the implementation of an AI-based risk monitoring system that analyzes transactions before they are completed.
According to the company, about $500 million in suspicious withdrawal requests were flagged during the quarter, Cointelegraph reports.
More than 4,000 users received warnings or faced automatic transaction blocks. Head of risk control David Zong уточнил that a significant portion of the funds remained in users’ accounts because clients canceled withdrawals themselves after receiving notifications. As a result, the exchange did not need to initiate refund or compensation procedures.
How the protection system works
Bybit’s system analyzes behavioral patterns and detects anomalies, including large-scale or unusual transfers. When high risk is identified, users receive a warning or the transaction is blocked in real time. The exchange also reported identifying 350 addresses linked to investment fraud, helping protect around 8,000 users.
Throughout 2025, the platform prevented more than three million credential stuffing attacks aimed at compromising user accounts. The company emphasizes that a preventive approach is more effective than post-incident investigations. The main goal is to stop funds before they are transferred to external addresses.
Cyber threats remain a serious risk
In 2025, the crypto industry lost about $3.4 billion due to hacking attacks. Criminals increasingly target large centralized exchanges and infrastructure services. Earlier, a data breach at Coinbase in May 2025 affected roughly 1% of users and cost the company up to $400 million in compensation.
Cybersecurity experts stress that AI monitoring and anomaly detection systems are becoming essential components of protection. In their view, proactive measures are what reduce the scale of losses. Without automated tools, responses to attacks are often delayed.
AI as a security standard for crypto exchanges
The growing number of attacks is forcing exchanges to implement intelligent real-time monitoring systems. According to industry analysts, more than 60% of major crypto platforms already use elements of machine learning to analyze transactions.
Such solutions help reduce fraud before transactions are finalized. With increasing trading volumes and expanding user bases, manual oversight is no longer sufficient. Bybit demonstrates a model where prevented losses exceed hundreds of millions of dollars per quarter. If this trend continues, AI tools could become an industry standard for protecting liquidity and maintaining user trust.
Recently we wrote that BTC is trading around $67,883, gaining 2.62% over the past 24 hours and 7.34% over the week, with total crypto market capitalization at $2.33 trillion (+1.72% in 24 hours). Bitcoin’s own market capitalization stands at approximately $1.35 trillion, confirming its dominant position in the sector.
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