A fake investment platform promised guaranteed returns and told you to deposit crypto to a Bybit address. Or the scammers received your funds at an external wallet, then moved them to Bybit for cash-out. Bybit requires KYC (since 2023), meaning every cash-out account is tied to a verified identity.
Investment scammers use Bybit for its deep USDT liquidity and derivatives markets. Some scammers don't just cash out — they use stolen funds as margin for perpetual futures, attempting to multiply gains before withdrawing. This creates a more complex tracing picture but also leaves detailed trading records.
Bybit compliance: Bybit's compliance team operates from Dubai (VARA-regulated). They process legal requests through their compliance email. Response times: 5-14 business days for freeze requests. Bybit is less transparent than Binance — no published timelines, no compliance portal.
Freeze capability: Bybit can freeze accounts with a police report or court order. Response: 5-14 business days. For urgent cases involving active fund movement, Bybit may implement temporary holds. The derivatives complication: if the scammer traded away funds on Bybit's futures market, the recoverable amount may be less than the original deposit.
KYC disclosure: Bybit requires KYC (since 2023): government ID, selfie, proof of address. Disclosure follows UAE/VARA procedures or MLAT for non-UAE jurisdictions.
A client lost €110,000 to a fake 'AI trading bot' that promised 5% daily returns. The scammers deposited the funds into a Bybit account and used €60,000 as margin for ETH perpetual longs. They lost €35,000 in a leveraged trade before we filed the freeze request. Bybit froze the account (containing €35,000 in remaining margin + €15,000 in unrealized profits) within 8 business days. Outcome: 45% recovery (€50,000 of €110,000). Lower recovery due to the scammer's futures trading losses.
Details anonymized to protect client confidentiality. Swiss professional secrecy applies.
The 'fee scam' within the scam: If a platform is asking you to pay 'withdrawal fees,' 'tax clearance,' or 'insurance deposits' to release your funds — these are additional scams. Do NOT send more money. Read our recovery scam warning.
Was your own Bybit account also frozen after sending to the scammer? Our Bybit account unlock practice can help.
Trading losses on Bybit futures are generally unrecoverable — the funds went to counterparties (other traders). However, any remaining margin, realized profits, or unrealized positions at the time of the freeze are recoverable. This is why speed is critical: the longer the scammer trades, the less may remain.
Yes, but slower than Binance. Bybit's compliance team in Dubai processes legal requests through VARA channels. For non-UAE jurisdictions, we use MLAT. Response time: 5-14 business days for freeze requests. Bybit has cooperated with multiple international investigations.
Yes, through legal process (court order, law enforcement request, or MLAT). Bybit's KYC includes government ID, selfie, and proof of address. The KYC was mandatory since 2023, so any recent investment scammer who used Bybit has a verified identity on file.
Bybit detects VPN usage and may flag accounts with geographic inconsistencies. If the scammer used a VPN, Bybit's records will show the detected IP addresses — which can help identify their actual location. This information is obtainable through legal process.
No legitimate investment platform trades customer funds on a personal Bybit account. If someone claims to be 'trading your funds on Bybit,' they are likely running a Ponzi scheme — using new deposits to pay 'returns' to earlier investors. The Bybit account belongs to the scammer, not to an institutional trading desk.
Yes. Bybit geo-restricts certain countries, but the scammer's account is not restricted. We file the legal request from our Swiss office, which is not subject to Bybit's geo-restrictions. The freeze applies to the scammer's account regardless of your location.
Describe what happened. Include the platform URL, deposit addresses, transaction hashes, and amount lost. We respond within 6 hours.