Elliptic: Utilization of Artificial Intelligence in Cryptocurrency Crime Rises Significantly

Artificial intelligence (AI) is increasingly being used to commit crimes within the crypto-asset ecosystem, according to a new report from Elliptic. The report notes that criminals are increasingly using generative artificial intelligence to create deepfakes and other deceptive materials to conduct crypto scams. In addition, there has been a significant increase in artificial intelligence-related scam tokens, investment platforms, Ponzi schemes and fake trading bots. Elliptic points out that scammers often use popular techniques and buzzwords to create tokens or investment schemes that ultimately lead to exit scams. One notable incident involved a fake AI trading bot scam called iEarn in 2023, which caused losses of approximately $6 million. And the proliferation of artificial intelligence trading bots prompted the U.S. CFTC to issue a warning in January. The report adds: “In addition to creating tokens, scammers are also using artificial intelligence as a means of promoting hype on fraudulent investment platforms. In particular, scammers are trying to exploit the potential of artificial intelligence to enhance trading or arbitrage capabilities.” In addition, artificial intelligence Smart technology is being used to facilitate large-scale crypto scams and disinformation campaigns. (CryptoSlate)