AI Deepfakes Power a New Era of Crypto Fraud
Crypto scams are becoming more convincing, more deceptive, and far more costly, thanks to advances in artificial intelligence. A new report by crypto exchange Bitget reveals that in 2024, scams driven by AI deepfakes and social engineering tactics caused global losses of over $4.6 billion—a staggering 24% increase from the previous year.
Bitget Uncovers Scale of the Threat
Released on June 10, Bitget’s Anti-Scam Month Research Report paints a troubling picture of how fraudsters are using AI-generated synthetic media to mimic trusted voices, bypass security systems, and promote fake investments. “In just Q1 2025, authorities dismantled 87 deepfake-related scam operations across Asia,” the report noted, showing how widespread and sophisticated these schemes have become.
High-Tech Illusions Behind Classic Scams
The report emphasizes that these scams are not always entirely new. Classic Ponzi and pyramid schemes are being given a facelift, rebranded as decentralized finance (DeFi) projects, NFT platforms, or GameFi tokens. These fraudulent ventures often feature professional-looking dashboards, AI-generated team photos, and even falsified Know-Your-Customer (KYC) credentials and audit reports.
Mimicking Crypto Executives With Synthetic Media
One of the most alarming cases took place in Hong Kong, where authorities arrested 31 individuals involved in a deepfake scam that used synthetic videos to impersonate crypto executives, defrauding victims of $34 million. These schemes, according to Bitget CEO Gracy Chen, go far beyond minor annoyances. “They’re deceptive tools that can mimic trusted voices and create incredibly convincing falsehoods,” she told CCN.
Nearly 40% of Major Frauds Involve Deepfakes
The report found that nearly 40% of high-value crypto scams in 2024 involved deepfake technology in some form. In one striking example from 2023, a fake crypto exchange named JPEX orchestrated a billion-dollar fraud using traditional advertising and celebrity endorsements to mask its criminal intent. Meanwhile, investigator ZachXBT exposed a separate network of rug-pull schemes—like Leaper Finance and Zebra Lending—that exploited multiple blockchains through a rotating scam strategy.
Sophisticated Tactics Fuel Greater Reach
Today’s scams are more complex and harder to detect. Bitget’s analysis highlights the rise of “social fission,” where victims unknowingly become promoters of fraudulent platforms via group chats, livestreams, and referral incentives. These scams also often include gamified user experiences and identity forgeries, making them appear more legitimate to unsuspecting users. “This can understandably shake people’s confidence in the space,” said Chen, “which is precisely why we’re so focused on addressing it head-on.”
Industry Unites to Combat the Deepfake Threat
Despite the challenges, Bitget’s CEO remains cautiously optimistic. “While the threat is real, we have the resources and tools to fight back with minimal efforts,” Chen said. She pointed to promising progress in deepfake detection technologies and increasing industry collaboration as key reasons to hope. “We’re seeing a lot of work being done on deepfake detection, and the industry is collaborating more than ever to share intelligence and spread awareness,” she added.
Bitcoin ATMs Still a Fraud Hotspot
While AI-powered scams are making headlines, traditional crypto fraud is still thriving. One of the fastest-growing threats comes from Bitcoin ATMs. According to CoinATMRadar, the U.S. leads globally with 30,433 machines, followed by Canada with 3,610 and Australia with 1,824. These machines are often used in fraudulent schemes, as they allow quick, hard-to-trace transfers. The FTC reported that Americans lost over $114 million to Bitcoin ATM scams in 2023—a tenfold increase since 2020. Meanwhile, Australians lost more than A$3.1 million to similar scams between January 2024 and January 2025.
As the crypto space matures, so do the threats. AI-generated deepfakes are making it harder than ever for users to distinguish between legitimate opportunities and well-disguised traps. While industry leaders are ramping up efforts to combat the new wave of fraud, the rising figures suggest that vigilance and education will remain critical in the fight to protect users worldwide.
