Two of the industry’s largest crypto platforms , Nexo and Bybit, have rolled out new security initiatives aimed at curbing scams and streamlining stolen fund reporting. Both initiatives come as fraud remains a major concern for the sector. According to Chainalysis, cryptocurrency scams caused at least $9.9 billion in on-chain losses in 2024 , driven by schemes such as romance scams, long-term “pig butchering” campaigns, and tech support impersonation. Bybit introduces VIP portal for stolen fund inflows Bybit, the world’s second-largest exchange by trading volume, has launched a new reporting portal tailored to VIP clients to flag suspected inflows of stolen funds. Accessible through multiple entry points on the exchange, the tool routes submissions directly to Bybit’s Lazarus Security Lab for 24/7 review. Cases are reviewed within two to four hours, with temporary internal restrictions placed on suspicious accounts as evidence is secured. While these measures do not replace legal freezing orders required for recovery, they are designed to allow Bybit to act quickly before victims engage law enforcement. “Our priority is to ensure that our VIP clients have fast and direct access to trusted tools when they need them most,” said David Zong, Head of Group Risk Control and Security at Bybit. “This service focuses on stolen fund inflows, giving us the ability to act quickly to secure evidence while clients prepare their law enforcement filings. It represents both our responsibility to our clients and our duty to regulators and the wider ecosystem.” Bybit said the service is part of its ongoing investment in risk controls and user protection and that the exchange is considering expanding the portal to retail clients in the future. Nexo expands Anti-Scam Engine across major blockchains Meanwhile, Nexo has introduced an enhanced version of its Anti-Scam Engine, a system designed to intercept fraudulent transactions before they are completed. Running default-on in the background, the system combines blockchain security integrations with contextual analysis to detect red flags in real time. When risk is elevated, clients are shown clear prompts with the option to review or proceed, and in rare high-risk cases, transactions can be paused for further review. The feature is already live on Ethereum, Optimism, BNB Chain, Polygon, Arbitrum, Avalanche, and Base, with phased support for Bitcoin, Solana, Tron, and XRP underway. “Our philosophy is simple: strong protection should feel invisible until it’s needed,” said Elitsa Taskova, Chief Product Officer at Nexo. “With this enhancement, Nexo is keeping clients safe from increasingly sophisticated scams while preserving control and convenience.” Featured image via Shutterstock. The post Nexo and Bybit double down on crypto security with new client protection tools appeared first on Finbold .
