Bybit Blocks $700M in Potential Losses After Major Security Breach

Bybit, a Dubai-based cryptocurrency exchange, reported that it intercepted more than $700 million in potential user losses during the first half of 2026. This comes after a major security breach in February 2025, where about $1.46 billion in digital assets was stolen from the exchange.

The company expanded its security systems to prevent similar attacks, including real-time on-chain monitoring and AI-assisted threat detection. Bybit monitored 100% of business-relevant on-chain activity during this period, identifying potentially fraud-linked funds and blacklisting malicious addresses.

During the first half of 2026, Bybit handled 10 security incidents involving listed token projects without recording losses to the platform. The company credited its AI tools for accelerating security testing, which processed over 100,000 security alerts and identified high-severity vulnerabilities more frequently than manual reviews.