Bybit claims new fraud system stopped $300M of risky withdrawals in Q4 2025

CoinTelegraph

by Zoltan Vardai

March 3, 2026

AI-Generated Deep Dive Summary

Bybit revealed that its AI-assisted risk monitoring system successfully blocked or disrupted over $300 million in suspected scam-related withdrawals during the fourth quarter of 2025. The innovative tool flagged malicious transactions before funds could leave the platform, marking a significant shift in how cryptocurrency exchanges approach fraud prevention. Bybit’s system identified approximately $500 million in suspicious withdrawal requests and protected more than 4,000 users by issuing real-time alerts or outright blocking transactions. The exchange highlighted that most of the $300 million “saved” came from users who voluntarily canceled their withdrawals after receiving real-time warnings. This proactive approach eliminates the need for clawbacks or reimbursements, as funds remain secure in user accounts. Bybit’s head of group risk control, David Zong, emphasized that this strategy reflects a broader industry trend: moving from reactive recovery measures to preemptive fraud prevention. This development underscores the growing importance of robust security systems in the crypto space, where scams and fraudulent activities remain persistent threats. Bybit’s AI-driven solution not only enhances user trust but also sets a precedent for other exchanges to adopt more proactive risk management strategies. As cryptocurrency adoption continues to rise, such measures are critical for safeguarding assets and fostering a reliable ecosystem. Bybit’s success in preventing $300 million in potential fraud demonstrates how technology can play a pivotal role in securing the future of blockchain transactions.

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Originally published on CoinTelegraph on 3/3/2026