Bybit Says Security Systems Prevented $700 Million in Potential User Losses

Crypto exchange Bybit reports that its upgraded security systems successfully prevented more than $700 million in potential user losses during the first half of 2026. Following a major security incident in February 2025, the company has significantly expanded its account protection, blockchain monitoring, and AI-assisted threat detection capabilities.

According to Bybit’s H1 2026 Risk & Security Report, the exchange took aggressive measures to protect its users between January 1 and June 15. Key achievements from the reporting period include:

• Suspicious withdrawals intercepted: More than 30,000 requests involving nearly 20,000 users were halted.
• Rapid risk reviews: The average initial review took just 4.7 minutes, with 95% of cases processed within ten minutes.
• Fraud prevention: The system identified approximately $212 million in funds potentially linked to fraudulent activities.
• Address blacklisting: More than 10,000 suspicious blockchain addresses were flagged and permanently blocked.

AI Takes a Bigger Role in Crypto Security

Bybit states that it now monitors 100% of blockchain activity relevant to its operations. This comprehensive oversight includes all listed token contracts, as well as the exchange's cold, warm, and hot wallets.

During the first half of 2026, the platform safely managed ten security incidents involving listed token projects without experiencing any internal losses. In two separate instances, Bybit's systems detected the ongoing attacks before the affected projects were even aware of the breach.

Artificial intelligence has become a cornerstone of the company’s modern security infrastructure. Over 100,000 security alerts were processed with the assistance of AI, while automated tools successfully reduced specific security testing procedures from around two weeks down to just two hours. Furthermore, Bybit’s automated red-team platform examined 1,489 publicly accessible assets, identifying more than 100 high-severity vulnerabilities.

While AI is heavily utilized to accelerate threat detection and system testing, the exchange emphasizes that human specialists remain fundamentally responsible for all critical security decisions.

Learning from the 2025 Security Breach

These sweeping infrastructural changes serve as a direct response to the devastating February 2025 cyberattack. During that incident, approximately $1.46 billion in digital assets were stolen from the exchange, acting as a powerful catalyst for Bybit to completely overhaul and fortify its digital security framework.