# Bybit Blocked $300M in Crypto Scams in Q4 2025 Alone

URL: https://technosports.co.in/bybit-blocked-300m-in-crypto-scams/  
Published: 2026-03-05  
Updated: 2026-03-05  
Author: Hardik Dhamija

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has revealed the results of its 2025 Security Initiative — intercepting and recovering over $300 million in scam-linked withdrawals in just the final quarter of 2025. With nearly $17 billion lost globally to crypto fraud last year according to Chainalysis, the numbers highlight both the scale of the problem and how aggressively Bybit is fighting back.

![](https://technosports.co.in/wp-content/uploads/2026/03/Bybit-1-1.jpg)

## Bybit 2025 Security Initiative — Key Numbers

| Metric | Result |
| --- | --- |
| Withdrawals Intercepted & Recovered | $300 million (out of $500M flagged) in Q4 2025 |
| Users Protected from Potential Life Savings Loss | 4,000+ |
| High-Risk Fraud Addresses Identified | 350 via proprietary [AI](https://technosports.co.in/?s=AI) detection |
| Users Shielded from Fraudulent Withdrawals | 8,000 |
| Credential Stuffing Attempts Blocked | 3 million+ in 2025 |
| Suspicious Addresses Tagged | 950 via automated + manual operations |
| Assets Frozen Across Fraud Cases | $4.32 million across 335 cases |

## How Bybit’s Triple-Tier Defence Works

Rather than reacting after losses occur, Bybit’s Dynamic Risk-Based Protection System intervenes before funds move. It operates across three tiers based on risk level.

![Bybit](https://technosports.co.in/wp-content/uploads/2026/03/Bybit-2-1.png)

Tier 1 (Early Warning) uses big-data heuristics to flag unusual patterns — like multiple withdrawals to newly created wallets — deploying automated surveys and pre-emptive blacklisting. Tier 2 (Real-Time Alert) targets accounts linked to credential stuffing databases or suspicious addresses, sending real-time prompts that force users to pause mid-transaction — directly countering the urgency tactics used in social engineering scams. Tier 3 (Immediate Blocking) enforces real-time withdrawal blocks and a mandatory one-hour cooling-off period for wallets tied to confirmed fraud schemes, including “pig butchering” investment scams.

The system integrates intelligence from leading blockchain analytics partners — TRM, Elliptic, and Chainalysis — and deploys end-to-end cross-chain tracing across bridges and mixers to map illicit fund movements across the broader ecosystem.

As crypto adoption accelerates in India and globally, Bybit’s 2025 initiative sets a benchmark for what proactive, AI-driven risk management looks like at exchange scale. Learn more at [Bybit.com](https://www.bybit.com/) and follow more crypto and fintech news on TechnoSports.

## FAQs

### **How much did Bybit intercept in scam-linked crypto withdrawals in 2025?**

Bybit intercepted and recovered over $300 million out of $500 million in flagged withdrawals in Q4 2025 alone, protecting 4,000+ users from potential loss of life savings through its AI-driven Triple-Tier Fraud Defence Framework.

### **What is Bybit’s Triple-Tier Fraud Defence System?**

It’s a three-level risk system: Tier 1 flags unusual patterns early using big-data heuristics; Tier 2 sends real-time alerts during suspicious withdrawals to counter social engineering; and Tier 3 enforces immediate blocking and a one-hour cooling-off period for wallets linked to confirmed fraud schemes like pig butchering scams.