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Bybit Detects and Stops Fake Deposits Saving Over 1B in DOT Funds

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Crypto Breaking News

Bybit blocked coordinated fake deposit attacks across multiple blockchains, saving over $1 billion in potential DOT losses. The exchange confirmed that no user funds were affected, as its monitoring systems identified and neutralized the threats in real time.

Advanced Attacks Target Deposit Systems

Bybit reported that attackers used complex transaction methods to simulate fake deposits. These methods targeted how exchanges track and confirm incoming funds. The attacks were carried out across several blockchain networks.

One method involved batch transactions. Attackers grouped multiple transfers into one operation. A large transfer failed, while smaller ones succeeded. Some systems may treat the full batch as successful.

Another method used multi-step transactions. Attackers changed ownership within the process. This created the appearance of incoming funds. However, there was no real balance increase.

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These tactics are designed to trick systems that rely on logs. They do not always reflect actual asset movement. Bybit stated that its systems avoided this issue by verifying real balances.

The exchange confirmed that all attempts were stopped in real time. No incorrect credits were issued. Users were not affected at any stage of the attacks.

Sources: Bybit Debuts Yield Generating Tokenized and Bybit Ramps Up Middle East.

Multi-Layer System Enables Real-Time Detection

Bybit uses a multi-layer validation system to monitor deposits. This system checks transactions at different levels. It ensures that only real asset movements are recorded.

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The first stage provides full on-chain visibility. Bybit scans blockchain data across supported networks, including complex and failed transactions.

The second stage filters transactions. It matches them with user deposit addresses. It also tracks related account structures.

The third stage focuses on validation. Each transaction is broken into smaller parts. These parts are verified independently. The system checks execution outcomes and transfer methods.

It also tracks ownership changes. This is important for networks like Solana. Balance checks confirm that assets have truly moved.

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The final stage uses anomaly detection. Transactions are analyzed based on structure and risk. Alerts are triggered for unusual patterns.

David Zong, Head of Group Risk Control and Security at Bybit, said, “Our system validates transactions at every level of execution.” He added that each operation is verified independently.

Ongoing Security Measures Across Crypto Platforms

Fake deposit attacks have existed in the crypto industry for years. Earlier cases include the Mt. Gox exploit and the Silk Road bug. These incidents led to large Bitcoin losses.

The recent attacks show how methods have evolved. Attackers now adapt to modern blockchain designs. They use more complex transaction flows.

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Bybit stated that its system is built to handle these changes. It focuses on transaction analysis and balance verification. Ownership tracking also plays a key role.

The exchange continues to improve its risk control systems. It aims to detect both known and new attack patterns. Real-time monitoring helps reduce risks across networks.

Bybit said its approach ensures that only valid deposits are credited. This reduces the chance of system manipulation. It also supports safer trading conditions for users.

The incident reflects ongoing efforts to secure crypto platforms. Exchanges continue to upgrade systems as attack methods change.

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Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Crypto World

Iran turns Strait of Hormuz into $1-per-barrel Bitcoin tollbooth

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Iran strikes Gulf energy network as oil surges past $110

Iran will charge tankers $1 per barrel in bitcoin to cross the Strait of Hormuz during a two‑week US ceasefire, adding a crypto tax to the world’s key oil chokepoint.

Iran will force every oil tanker transiting the Strait of Hormuz during the new two-week ceasefire with the US to pay a $1-per-barrel toll in cryptocurrency, turning the world’s most sensitive oil chokepoint into a de facto bitcoin paywall. According to the Financial Times, Tehran will demand that shipping companies settle the fee in digital assets, primarily bitcoin, as it seeks hard-to-trace revenues while sanctions bite. Hamid Hosseini, spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, said the system is designed to slow traffic on Iran’s terms and tighten control over what moves through the corridor.

Under the scheme, tankers must first email Iranian authorities with detailed cargo manifests before entering the strait. Hosseini told the Financial Times that once the email is received and Tehran completes its assessment, “vessels are given a few seconds to pay in bitcoin, ensuring they can’t be traced or confiscated due to sanctions.” He added that “everything can pass through, but the procedure will take time for each vessel, and Iran is not in a rush,” underscoring that the stated aim is to prevent weapons shipments during the pause in fighting. With typical crude cargoes ranging from 500,000 to 2 million barrels, a single transit could mean crypto payments of $500,000 to $2,000,000 per voyage.

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Ceasefire, crypto and a global oil lifeline

The toll comes as Washington and Tehran test a fragile truce that hinges on a partial reopening of the Strait of Hormuz, which before the war carried roughly a fifth of the world’s seaborne oil. A senior Iranian official told Reuters that Iran could reopen the strait “limited, under Iran’s control” as early as Thursday or Friday, ahead of talks with US officials in Pakistan. Oil markets have already reacted: Brent futures slid about 13% to roughly $94.76 per barrel and US benchmark WTI dropped more than 15% to around $95.79 after President Donald Trump agreed to the two-week ceasefire, conditional on the “immediate and safe” reopening of the strait.

In Washington, Trump has floated turning the tolls themselves into a joint business model. “We’re thinking of doing it as a joint venture,” he told ABC News’s Jonathan Karl, calling it “a way of securing it — also securing it from lots of other people. It’s a beautiful thing.” That suggestion follows earlier musings that the US could impose its own tolling regime on ships using the strait, effectively monetizing a corridor where even a $1-per-barrel surcharge is a small fraction of crude trading in the mid-$90s but represents a new geopolitical tax on a market still reeling from weeks of war-driven price spikes.

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Standard Chartered Mulls Restructuring of Zodia Crypto Custodian: Report

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Standard Chartered Mulls Restructuring of Zodia Crypto Custodian: Report

Standard Chartered is reportedly weighing a restructuring of its majority-owned crypto custodian Zodia Custody, as large banks look to bring more digital asset infrastructure inside their core banking operations.

The United Kingdom-based lender plans to fold Zodia’s crypto custody business into a division inside its corporate and investment bank that already offers similar services, while keeping Zodia operating as a standalone Software-as-a-Service (SaaS) platform for digital asset custody, according to Bloomberg on Wednesday, citing people familiar with the matter. An announcement on the restructuring could reportedly come as soon as this month.

It is not yet clear whether Standard Chartered has opened negotiations with Zodia’s minority shareholders, which include Northern Trust, Emirates NBD, National Australia Bank and SBI Holdings.

Standard Chartered has rapidly expanded its own digital asset footprint, reportedly exploring the launch of a crypto prime brokerage platform through its venture arm, SC Ventures, and rolling out institutional crypto trading in summer 2025.

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Related: Standard Chartered says faster stablecoin turnover could curb demand

The bank was an early mover into digital assets, setting up Zodia in 2020 with Northern Trust, and the custodian has since raised external capital and grown across seven offices in Europe, Asia and the Middle East.

Zodia Custody Services. Source: Zodia Custody

Cointelegraph reached out to Standard Chartered and Zodia, but had not received a response by publication.

How other big banks are internalizing crypto custody

Standard Chartered’s reported rethink comes as other global banks take digital asset custody directly under regulated banking entities. In February, Morgan Stanley applied for a US de novo national trust bank charter, which would allow it to custody certain digital assets and execute purchases, sales, swaps, transfers and staking services for clients within a bank-regulated framework.

In October 2022, BNY Mellon launched a Digital Asset Custody platform in the US that lets selected clients hold and transfer Bitcoin (BTC) and Ether (ETH) alongside traditional assets on a single platform, positioning the bank as a core provider of both conventional and tokenized asset servicing.

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