Bybit says its upgraded AI-based security systems prevented more than $700 million in potential losses in the first half of 2026, according to the crypto exchange’s latest risk and security report.
The company said the new controls blocked more than 30,000 suspicious withdrawal attempts between January 1 and June 15, helping protect nearly 20,000 users. The update comes more than a year after Bybit suffered a major hack in February 2025, when attackers linked to North Korea’s Lazarus Group stole about 400,000 ETH valued at roughly $1.46 billion at the time.
#Why does this matter for crypto investors
This matters for crypto investors because exchange security remains one of the biggest risks in digital assets. If a platform can detect suspicious activity before funds leave the system, it can reduce the chance of major customer losses, reputational damage, and disruption across the wider crypto market.
Bybit said its systems now monitor all relevant on-chain activity tied to its risk controls. The exchange also said it uses behavioral analysis and AI-assisted threat detection to identify fraudulent transactions before they are completed.
#What changed after the 2025 hack
What changed after the 2025 hack is that Bybit appears to have rebuilt key parts of its security workflow around automation and faster response times. The company said its automated auditing tools cut vulnerability assessment and testing timelines from around two weeks to about two hours.
During the reporting period, Bybit said it processed more than 100,000 security alerts. It also said AI-assisted review found high-severity vulnerabilities at three to five times the rate of manual analysis. For investors and crypto users, that suggests exchanges are increasingly using AI not just for compliance and monitoring, but for active defense against theft and fraud.
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#What should investors watch next
Investors should watch what comes next in three areas. First, it will be important to see whether Bybit can maintain this record over a longer period. Second, market participants should look for signs that other exchanges adopt similar AI-led security tools. Third, users should remember that company reports show management’s version of events, so independent verification and future incident data will matter.
Bybit also disclosed that it handled 10 token-related security incidents in the first half of 2026 and said none led to platform losses. The company has also started legal action in US courts against the people and entities it says were responsible for the 2025 attack.
For retail investors, the broader takeaway is clear. Security infrastructure is becoming a competitive factor in crypto, especially after high-profile breaches. In a market where trust can disappear quickly, exchanges that can show faster detection and stronger controls may have an advantage in attracting and retaining users.