Bybit Blocks $700M in Fraudulent Withdrawals Amid Security Overhaul

The exchange’s latest risk report reveals that over 30,000 suspicious withdrawal requests were blocked between January 1 and June 15, protecting nearly 20,000 users. Bybit now employs a three-layered defense system integrating user account controls, continuous on-chain monitoring, and AI-driven threat detection. This automation has drastically accelerated response times, with security assessment cycles shrinking from two weeks to approximately two hours.

Beyond internal protections, the exchange has expanded its reach to monitor 100% of business-relevant on-chain activity. This proactive surveillance identified 10 security incidents affecting listed token projects, allowing Bybit to intervene before losses occurred. In one instance, the firm’s automated systems flagged threats before the projects themselves were aware of the vulnerabilities. David Zong, head of group risk control and security, noted that the cybersecurity arms race has shifted into an era of minutes, where AI processes information and pinpoints vulnerabilities while human specialists retain final authority over critical decisions.

While technical upgrades aim to prevent future breaches, Bybit continues its legal pursuit of the Lazarus Group. The exchange recently filed a lawsuit in the U.S. District Court for the District of Columbia against North Korean entities, seeking the recovery of assets lost in the 2025 breach. Although tracing stolen funds has proven difficult as attackers utilize mixers and cross-chain services, the civil proceedings represent a continued effort to hold the perpetrators accountable.