Key Insights:
- Bybit recovered $300M from flagged withdrawals, securing over 4,000 users from fraud attempts.
- The exchange blocked more than 3 million login attacks, preventing unauthorized access to accounts.
- Collaborative monitoring with TRM, Elliptic, and Chainalysis strengthened security across the cryptocurrency ecosystem.
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, released its 2025 security report. The exchange rolled out a multi-layered system to prevent fraud and protect user funds. According to Chainalysis, $17 billion in cryptocurrency was lost to scams and frauds in 2025. Bybit’s system aims to stop losses before they happen.
The platform recovered $300 million from flagged withdrawals, protecting more than 4,000 users. It also identified 350 high-risk addresses, keeping 8,000 users safe from potential losses. In addition, Bybit blocked over 3 million login attacks targeting user accounts.
Tiered Withdrawal Protection
Bybit uses a three-level system for withdrawal safety. Tier 1 provides early warnings for unusual patterns, such as large withdrawals to new addresses. Automated checks allow the team to preemptively block risky destinations.
Tier 2 gives real-time alerts for accounts flagged by leaked credentials or suspicious withdrawal addresses. The alerts prompt users to pause and check transactions, helping prevent scams using urgency or pressure.
Tier 3 applies immediate blocks for confirmed scam addresses. High-risk withdrawals are stopped, and a one-hour cooling-off period gives users time to verify the transaction.
On-Chain Monitoring
Bybit monitors transactions across multiple blockchains. In Q4 2025, 350 addresses were automatically flagged and 600 addresses manually checked, preventing $1 million in losses. The platform froze $4.32 million in funds for 335 victims of fraud.
Collaboration With Industry Partners
Bybit works with TRM, Elliptic, and Chainalysis to share information and track fraud networks. David Zong, Head of Group Risk Control, said,
Bybit’s system combines withdrawal checks, real-time alerts, and blockchain tracking to protect users. The framework strengthens the safety of funds while keeping transactions smooth for regular trading.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Source: https://coincu.com/news/bybit-recovers-300m-in-2025/
