This Crypto Exchange Has Blocked 3 Million User Account Hijacks

Bybit says its new AI-driven risk system intercepted $300 million in scam-related withdrawals in Q4 2025 and blocked more than 3 million credential stuffing attacks over the past year. The exchange also revealed it is now sharing fraud monitoring intelligence with firms including TRM Labs, Elliptic, and Chainalysis to strengthen industry-wide defenses.

According to Bybit’s recent press release, $500 million in suspicious withdrawals were flagged in the fourth quarter alone. Of that amount, $300 million was successfully intercepted or recovered, protecting more than 4,000 users, in what the company referred to as “unprecedented results for user safety.”

Three-Tier Fraud Defense

As it happens, the exchange introduced a tiered risk-based withdrawal protection system designed to intervene before funds leave the platform, thus moving beyond reacting to scams after the damage is done. Each level has a different response.

Low-risk anomalies trigger automated warnings and backend monitoring. Medium-risk cases prompt real-time alerts during withdrawals, encouraging users to review transactions before proceeding. High-risk addresses linked to confirmed scams trigger immediate withdrawal blocks and a mandatory one-hour cooling-off period.

Bybit says this approach has proven particularly effective against social engineering scams that rely on urgency and emotional pressure, allowing users to regain composure and vet their transactions properly.

AI And On-Chain Monitoring

In Q4 alone, Bybit’s AI tools identified 350 high-risk fraud addresses tied to investment scams such as so-called ‘pig butchering’ schemes. The exchange says its system shielded around 8,000 users from potential losses as a result.

The platform also auto-labeled hundreds of suspicious addresses and manually tagged hundreds more through internal investigations. Separate cross-chain tracing efforts reportedly helped secure asset freezes totaling $4.32 million for fraud victims.

Beyond withdrawal fraud, Bybit claims it blocked over 3 million credential stuffing attempts, which refers to automated attacks that use leaked username-password combinations to hijack accounts.

Industry Collaboration

Bybit emphasized that security is not a competitive feature but a shared responsibility across the cryptocurrency industry. The exchange is integrating intelligence feeds from TRM, Elliptic, and Chainalysis to identify risky deposit and withdrawal activity in real time.

Meanwhile, the broader backdrop is concerning. Chainalysis estimates that crypto scams and fraud in 2025 have cost the industry $17 billion.

Bybit’s data suggests exchanges are shifting from reactive enforcement to proactive, AI-driven prevention, intervening before funds disappear rather than chasing them afterward.

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