Alleged Bybit scam sparks concerns over safety of P2P transactions

A recent peer-to-peer (P2P) cryptocurrency transaction on Bybit has reignited concerns about safety and the integrity of the platform’s trading system, with users calling for stricter oversight and better protection mechanisms.

Freda, a Nigerian trader known on X as @freda_trades, publicly accused Bybit of failing to protect her during a P2P transaction that resulted in her being scammed by a verified vendor. Her experience, shared in a series of posts on X, has sparked a broader conversation about the risks of P2P trading and the responsibilities of cryptocurrency exchanges in ensuring user safety.

According to her post, the transaction involved a verified vendor named “SIR_KWALI43GN,” whose profile boasted a 95% completion rate for orders within 30 days and a 79% good rating

A screenshot of the vendor’s profile indicates that the vendor had completed 454 orders, with 388 successful sales. Verified statuses are marked by checks for email, SMS, identity, and deposit.

This gave Freda the confidence to proceed.

However, the transaction quickly took a turn for the worse. Freda explained that the vendor marked the payment as completed without transferring the funds to her account. When she informed the vendor that she had not received the payment, he filed an appeal.

To Freda’s shock, within 30 minutes, Bybit released her cryptocurrency to the vendor, despite her protests and lack of confirmation. 

“I tried filing for appeal, but the video evidence I shared didn’t work,” Freda wrote in a follow-up post. She expressed frustration at the speed of the resolution in favor of the vendor, calling out Bybit and its African division, @BybitAfrica, to investigate the matter.

Freda’s posts gained traction, with several users echoing her concerns and urging Bybit to take action. The incident also fueled a trending discussion on X titled, “Is Bybit turning a blind eye to P2P scams? User experiences raise concerns about the platform’s integrity.” It also highlights similar experiences from other users, with some suggesting alternative platforms.

Bybit’s response and resolution

At about 08:22 UTC today, Freda shared an update that shows that Bybi reached out to her via direct message. She clarified that she initially mistook the vendor’s 95% completion rate for a rating.

The actual number was 79%.

Other users pointed out that a 79% rating should have been a red flag. @FlexxRichie, for instance, commented, “I can’t do it with any vendor with less than 98%,” while @Oluwafemi suggested looking for vendors with at least a 98% or 99% rating and a minimum of 2,000 trades within 30 days.

Freda’s persistence paid off. Hours later, at 16:41 UTC, she shared good news: Bybit had credited her account with the lost cryptocurrency, and the vendor had been blocked from the platform.

“I appreciate @BybitAfrica’s prompt intervention and their effort in keeping the P2P platform safe for all users,” Freda wrote, thanking the community for their support.

Screenshots of Bybit’s communication with Freda confirmed that the platform had resolved the dispute and taken action against the vendor. However, the resolution did little to quell broader concerns about the platform’s security measures.

The incident is happening at the peak of P2P trading’s popularity, particularly in emerging markets like Nigeria, where currency devaluation and limited access to centralized exchanges have driven significant growth in P2P crypto activity.

According to a 2021 Chainalysis report, countries like Nigeria, Kenya, and Venezuela have seen a surge in P2P transactions, with platforms like Binance P2P reporting over 1.5 million active users and 7.5 million transactions annually. The global cryptocurrency exchange market is projected to grow at a compound annual growth rate of 27.8% from 2022 to 2030, further underscoring the increasing demand for P2P platforms.

However, this growth has also attracted scammers, as highlighted by various sources. Bybit’s guide on avoiding P2P scams warns of tactics like fake payment receipts and impersonation of platform representatives, urging users to verify payments and use anti-phishing codes.

Cointelegraph notes that scammers often use fake confirmations or manipulated screenshots to trick users into releasing crypto, while the DFPI’s Crypto Scam Tracker lists common scams like fraudulent trading platforms and blackmail schemes.

Freda’s experience also coincides with a troubling trend in the crypto space. On March 7, 2025, Bybit reported a $1.4 billion heist linked to North Korean hackers. While her case involved a P2P scam rather than a hack, it underscores the broader vulnerabilities in the crypto ecosystem, particularly on platforms like Bybit, which have faced criticism for inadequate dispute resolution and user protection.

In response to her case, Bybit stated on Trustpilot, apologizing for the inconvenience and emphasizing their commitment to a “seamless and secure experience” for users. The platform also highlighted its efforts to improve services, particularly for African countries, where P2P trading is a lifeline for many.