Bybit’s AI Risk Engine Strengthens Hot and Cold Wallets, Screening $1 Billion in Withdrawals in First Half of 2024

Dubai, United Arab Emirates, September 20th, 2024

Bybit, the second-largest cryptocurrency exchange globally by trading volume, is enhancing its security measures by integrating advanced AI technologies to combat hacking and illicit activities. In the first half of 2024, Bybit successfully managed 32 million withdrawals and prevented the loss of over $79 million in client assets by scrutinizing nearly $1 billion in suspicious withdrawal requests. Additionally, more than $37 million in project funds were safeguarded.

Bybit employs a tiered strategy to ensure fund safety, focusing on both hot and cold wallets to mitigate hacking and fraud risks. The exchange has bolstered its verification processes, applying heightened scrutiny to significant transactions and high-risk withdrawals. While many fraudulent attempts were intercepted in the initial stages, Bybit detected unusual withdrawal requests totaling over $940 million, with more than 8.4% confirmed as fraudulent attempts during the first six months of 2024.

Fraud Prevention Amidst Growing Threats

As cryptocurrency adoption expands, the risk of fraudsters targeting both individual and institutional vulnerabilities increases. Bybit plays a crucial role as a barrier against these threats, utilizing sophisticated AI-driven security systems to thwart illegal activities. The rise of AI presents significant challenges for security experts, compelling service providers to adapt their security frameworks.

Comprehensive AI-Driven Security Measures

The implementation of AI technology at Bybit acts as a robust defense against emerging risks. This advanced system not only secures user wallets but also identifies complex, AI-enabled fraud attempts. Users on the platform can opt for multi-channel verifications and biometric authentication to ensure secure identity verification. Recently, Bybit’s risk engine successfully blocked an attempt that utilized face-swapping technology to circumvent its facial verification in the Know Your Customer (KYC) process.

Employing a proprietary risk control engine alongside user behavioral analytics, Bybit has enhanced its fraud detection capabilities through both automated processes and human oversight. A team of over 50 risk and security experts, combined with data analytics, helps identify irregular behavior and alert the team to suspicious activities, significantly reducing the risk of unauthorized access and withdrawals.

A Commitment to Safety in Trading

Helen Liu, Chief Operating Officer of Bybit, stated, “One of the main reasons users prefer centralized exchanges is the extensive support and protection they provide. Bybit invests significantly in our infrastructure to ensure that our 40 million customers can trade with confidence, knowing their assets are safeguarded by robust security measures.”

Liu also noted that the fraudulent withdrawal rate remained below 10% in the first half of 2024 and emphasized Bybit’s dedication to reinforcing its security measures to ensure a safe trading environment for all users.

Setting New Security Standards in the Industry

Bybit has recently introduced a comprehensive upgrade to its security protocols. Verified by a leading blockchain auditor, Bybit’s innovative safety model achieved a perfect trust score, underscoring the platform’s commitment to protecting user assets. By leveraging rigorous security frameworks and fortified vaults, Bybit ensures that clients’ funds are stored in highly secure infrastructures capable of withstanding the most severe hacking attempts.

As part of its mission to build lasting trust in the Web3 ecosystem, Bybit aims to establish new benchmarks for security within the cryptocurrency industry.