Key Takeaways
- Nearly 40% of high-value crypto frauds in 2024 involved AI-generated deepfakes, according to Bitget’s new report.
- The crypto exchange reported that classic pyramid schemes are now masked with high fidelity visuals and fake identities.
- However, traditional crypto scams remain, being pushed by the growing adoption of bitcoin ATMs.
Crypto scams have entered a new era, driven by hyper-realistic AI deepfakes and increasingly sophisticated social engineering tactics.
According to a new research report co-authored by Bitget, scams involving AI and social manipulation cost crypto users more than $4.6 billion in 2024, a 24% year-on-year increase.
AI Deepfake Crypto Scams on the Rise
On June 10, crypto exchange Bitget released its Anti-Scam Month Research Report, highlighting how fraudsters are evolving rapidly with the weaponization of generative AI.
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These deepfakes are being used to promote fake investment schemes, fraudulent tokens, or to bypass identity verification on major exchanges.
“In just Q1 2025, authorities dismantled 87 deepfake-related scam operations across Asia,” the report states.
In one of the largest operations, Hong Kong police arrested 31 suspects for impersonating crypto executives using synthetic media, defrauding victims of $34 million.
Old Frauds, Better Disguise
The report warns that traditional fraud tactics are now being hidden behind more convincing facades.
Classic Ponzi and pyramid schemes are being rebranded as DeFi projects, NFT investments, or GameFi platforms, often featuring gamified dashboards, AI-generated team photos, and forged KYC and audit credentials.
According to the report, nearly 40% of high-value frauds in 2024 involved deepfake technology.
“These aren’t just minor annoyances, they’re deceptive tools that can mimic trusted voices and create incredibly convincing falsehoods,” Bitget CEO Gracy Chen told CCN.
A notable example from 2023 involved JPEX, a so-called crypto exchange that conducted a billion-dollar fraud in Hong Kong under the pretense of high-yield staking.
The scheme was promoted through physical advertisements and celebrity endorsements.
Last year, blockchain investigator ZachXBT uncovered a scam network responsible for a series of rotating rug pulls, including Leaper Finance and Zebra Lending, which exploited multiple Layer 1 blockchains.
Compared with traditional Ponzi schemes, today’s digital scams display several new characteristics, according to Bitget, including tronger technical disguises, “Social fission” propagation, which uses messaging apps and livestreams to encourage users to recruit others, and Gamified interfaces and identity forgery.
“This can understandably shake people’s confidence in the space, which is precisely why we’re so focused on addressing it head-on,” Chen said.
The Bitget CEO added that despite the worrying statistics, she remained optimistic for the future.
“While the threat is real, we have the resources and tools to fight back with minimal efforts,” Chen told CCN.
“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.
Traditional Crypto Scams Remain
Despite the emergence of deepfake-enabled fraud, traditional crypto scams are also on the rise.
One of the fastest-growing threats involves the global expansion of Bitcoin ATMs, which remain a focal point of concern for regulators.
According to data from CoinATMRadar , the U.S. hosts a staggering 30,433 Bitcoin ATMs—by far the highest number globally. Canada follows with 3,610, and Australia ranks third with 1,824.
While it’s difficult to determine which country experiences the most Bitcoin ATM scams, the U.S., Canada, and Australia are all reporting high levels of fraud.
In the U.S., the Federal Trade Commission (FTC) reported that Americans lost over $114 million to Bitcoin ATM scams in 2023, marking a tenfold increase since 2020.
Meanwhile, between January 2024 and January 2025, Australians lost more than A$3.1 million to cryptocurrency ATM fraud, according to the Australian Federal Police.
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