AI-Powered Tools Fueling a Surge in Cryptocurrency Scams, New Report Finds

Artificial intelligence is becoming a powerful weapon for criminals in the digital currency space, according to a new analysis by the blockchain analytics firm Elliptic. Their “The State of Crypto Scams 2025” report highlights how AI technologies like deepfake software, advanced chatbots, and fraudulent ID generators are enabling criminals to automate and scale their illicit operations.

The report details how these tools make scams more convincing and widespread. For instance, AI chatbots can overcome language barriers, allowing perpetrators to trick a global audience. Furthermore, deepfake technology is being used to create fraudulent videos of celebrities or industry leaders endorsing fake investment schemes, luring victims into compromising their funds and personal data.

Elliptic’s research points to a concerning trend where North Korean hackers have utilized deepfakes to impersonate cryptocurrency executives in video calls, using these interactions to deploy malware. This new level of sophistication is contributing to the rise of various scams, including “pig butchering,” sextortion, and rug-pulls involving memecoins.

The financial impact of these activities is staggering. Citing FBI data, the report notes that out of $16.6 billion lost to fraud in the U.S. last year, a substantial $9.3 billion was related to cryptocurrency.

Elliptic’s findings suggest that scams may now be the most profitable form of criminal activity within the crypto ecosystem. The report uncovered dedicated online marketplaces that facilitate these fraud operations, which have reportedly processed over $30 billion in cryptocurrency—a figure that significantly exceeds the transaction volumes on traditional dark web markets focused on narcotics.