AI Fuels New Wave of Crypto Crime: Elliptic

Elliptic’s report unveils deepfake tactics targeting Ripple and GPT-themed tokens exploiting AI hype, urging increased awareness and legislative measures. 

According to a new report from Elliptic, a blockchain intelligence company, scammers use AI to commit more complicated crypto crimes. In the report “AI-enabled Crime in the cryptoasset ecosystem,” Elliptic notes the increasing threat artificial intelligence-driven fraud presents.

Based in London, the company describes how malevolent actors utilize artificial intelligence to create incredibly realistic deepfakes of celebrities, politicians, and business leaders, which they then use to give false credence to bogus cryptocurrency projects.

“A string of deepfakes have especially targeted Ripple (XRP) and its CEO, Brad Garlinghouse, particularly after the company won its court battle with the U.S. Securities Exchange Commission in July 2023,” the report notes. These deepfakes fool investors by passing for a veneer of legitimacy, enabling mass fraud.

GPT-Themed Tokens Exploit AI Hype for Fraudulent Gains

The report also discusses the current trend of tokens based on GPT. Criminals are making and selling these tokens with promises of huge returns. Elliptic uncovered hundreds of coins that leverage similar tactics spread across various blockchains. These coins are usually sold on unofficial trading platforms where con artists claim to be connected to actual AI companies like ChatGPT.

“Some may indeed reflect well-intentioned ventures,” Elliptic points out, “but many have been shilled in amateur trading forums where scammers claim some form of official association with ChatGPT or other supposedly legitimate AI company.”

More people need to be aware of AI-related problems and their solutions, even though most artificial intelligence projects are still in their early stages in the cryptocurrency sector.