- Bybit AI stops $300M suspicious crypto withdrawals fast
- Exchange flags $500M risky transactions before funds exit
- Over 4,000 users protected through real-time risk alerts
Bybit stopped more than $300 million in suspected scam-related withdrawals during the fourth quarter of 2025 after activating an AI-driven risk monitoring system. The exchange disclosed that the tool flagged nearly $500 million in withdrawal requests before funds left the platform. This development comes as crypto hacks caused $3.4 billion in losses across the industry during 2025.
In a company blog update, Bybit said the system identified high-risk transactions in real time. Once flagged, the platform either displayed warning prompts or blocked the transfers outright. As a result, more than 4,000 users avoided potential losses during the quarter.
David Zong, head of group risk control at Bybit, clarified that a large share of the $300 million involved withdrawals users chose to cancel after seeing alerts. Consequently, those funds remained in user accounts and never required reimbursement. He emphasized that because the system stopped the transfers before completion, the exchange did not need to recover assets.
Beyond individual alerts, Bybit also reported that it detected 350 high-risk investment fraud addresses in the previous quarter. That action shielded roughly 8,000 users from sending funds to suspicious destinations. Additionally, the exchange blocked more than three million credential stuffing attempts throughout 2025, reflecting persistent efforts by hackers to breach user accounts.
Also Read: Bitcoin at Breaking Point as $71,000 Level Sparks Major Showdown
AI Framework Flags Suspicious Patterns Before Funds Move
The risk detection system relies on internal exchange data to identify unusual patterns such as mass withdrawals or transfers to flagged wallet addresses. When the system detects abnormal behavior, it escalates the case based on severity. In lower-risk situations, users receive warning prompts. In higher-risk scenarios, the platform blocks the withdrawal immediately.
Moreover, Bybit’s operations team can blacklist dangerous addresses once confirmed. This layered structure allows the exchange to intervene before funds exit the platform, rather than pursuing recovery after losses occur. Crypto security specialists have urged platforms to adopt AI-based anomaly detection tools as hackers increasingly target large exchanges. Real-time monitoring systems can identify compromised accounts and suspicious transactions before irreversible transfers take place.
Bybit’s fourth-quarter figures indicate that proactive detection measures can significantly reduce exposure to scam-related withdrawals. The exchange’s AI rollout aligns directly with its reported prevention of over $300 million in potentially fraudulent transactions.
Conclusion
Bybit’s AI monitoring system played a central role in stopping high-risk withdrawals before completion. As cyber threats escalate, exchanges continue to strengthen automated safeguards to protect user funds.
Also Read: Bitcoin at Breaking Point as $71,000 Level Sparks Major Showdown
