The ByBit crypto exchange claims to have deflected hundreds of fraud transactions over the last few months owing to its AI-assisted risk monitoring system. In a report published over the weekend ByBit said it managed to intercept impersonation scams, preventing $300 million in losses.
The Dubai-headquartered exchange claimed that between October and December 2025, ByBit identified 350 high-risk investment fraud initiations. As per its report, ByBit’s proprietary AI algorithms has managed to safeguard over 8,000 users from potential financial losses.
“By integrating AI-driven on-chain monitoring with real-time intelligence from industry partners like TRM , Elliptic and Chainalysis, we not only just protect Bybit users, but also help map the DNA of fraudulent networks,” David Zong, Head of Group Risk Control at Bybit said in the official blog post.
The AI engine, ByBit claims, flagged over three million automated login attempts. This AI system is capable of holding suspicious withdrawals for one hour under in “cooling off” period.
Through this system, the exchange aims to dismantle social engineering scams by restricting unauthorized access into its system. In some genuine transaction initiations, the system did cause transfer time delays, but ByBit said it is a small price to pay for the safety of user funds and its internal networks.
“In 2025 Q4 out of $500 million in flagged withdrawals, Bybit successfully intercepted and recovered $300 million, protecting the life savings of over 4,000 users. The platform successfully thwarted over three million credential stuffing (account takeover) attempts by hackers,” the report added.
The exchange is presently focusing on rolling out its services internationally. Europe, India, and Kazakhstan are among regions where ByBit has recently kickstarted its operations.
Hence, it seems only natural, that the exchange is ramping up its security infrastructure and deploying AI mechanisms. A Chainalysis report, last year had claimed that over $17 billion in cryptocurrency was lost to scams and frauds, highlighting the threats hovering over the sector.
“We are sharing these standardized monitoring clues across the ecosystem because a safer industry for one is a safer industry for all,” Zong added.