Bybit reveals over $940m in abnormal withdrawals during H1 2024

Scammers continue to target cryptocurrency exchanges, with Bybit reporting nearly $1 billion in suspicious withdrawal requests in the first half of 2024.

Bad actors appear to be stepping up their efforts to defraud cryptocurrency exchanges, with Bybit detecting nearly $1 billion in suspicious withdrawals in the first half of 2024.

The exchange announced in a press release on September 20 that it has prevented the loss of more than $79 million in customer assets thanks to advanced security measures that use artificial intelligence technology to detect and block fraudulent activity.

Bybit also flagged a total of $940 million in anomalous withdrawal requests, more than 8.4% of which were confirmed as fraud attempts. The exchange says its AI-powered systems, including biometric authentication and behavioral analytics, played a key role in thwarting a recent attempt “involving face-swapping technology intended to bypass facial verification.”

Bybit tightens security amid industry scrutiny

Bybit’s chief operating officer, Helen Liu, said the fraudulent withdrawal rate remained “below 10%” in the first six months of 2024. The exchange’s focus on security comes as the exchange faces broader industry scrutiny.

In May, international prime brokerage firm Hidden Road halted trading for its clients on Bybit, citing concerns over its verification practices. While the exchange has not publicly addressed the matter, a spokesperson emphasized the company’s commitment to transparency.

Despite these challenges, Bybit said it has processed more than 30 million withdrawals since the beginning of the year and secured more than $37 million in project funds, reaffirming its commitment to security in the growing threat landscape.