Bybit Says It Blocked $300M in Scam Withdrawals in 2025 — Here’s How

Bybit blocked $300M in scam withdrawals in 2025, taking crucial steps to protect users amid soaring crypto fraud losses of $17 billion. Learn more about their strategy.

Crypto scams aren’t just a nuisance—they’re a multi-billion dollar problem. In fact, roughly $17 billion in cryptocurrency was lost to scams and fraud in 2025 according to Chainalysis. With this backdrop, Bybit has taken significant steps to safeguard its users, reporting that it blocked $300 million in scam withdrawals last year. How did they achieve such impressive numbers? Let’s dive in. What Changes Did Bybit Make to Combat Scams? In a bold shift in strategy, Bybit transitioned from a reactive damage control approach to **proactive interception**. This change has been crucial in monitoring and preventing potential losses. In the 4th quarter of 2025 alone, Bybit flagged an astonishing $500 million in suspicious withdrawals, ultimately intercepting or recovering that $300 million to protect over 4,000 users . This wasn’t just a lucky break; it was a carefully engineered system. What Is the Dynamic Risk-Based Protection System? Bybit introduced what it refers to as a **Dynamic Risk-Based Protection System**, a robust three-tier withdrawal defense framework designed to act before funds leave the platform. Unlike traditional methods that freeze everything indiscriminately, this dynamic system tailors its response based on risk intensity. Tier 1: Early Warning This tier monitors for **low-risk anomalies**, such as clusters of withdrawals to newly created addresses. When flagged, it triggers automated surveys and behavioral checks. By leveraging big-data heuristics, the platform can identify emerging scam patterns, and even preemptively blacklists high-risk destinations. Tier 2: Real-Time Alert If an account raises suspicions—such as being linked to credential stuffing databases or dubious withdrawal addresses—a real-time warning is issued at the point of withdrawal. The aim is clear: disrupt the psychological urgency that scammers often rely on. Tier 3: Immediate Block + Cooling-Off This tier acts decisively against confirmed scam-linked addresses. Withdrawals tied to