Ribbit Capital led the investment round with additional participation from Franklin Templeton, Nyca, First Round, and Lightspeed Faction.
The Series A investment was led by venture capital giant a16z's crypto arm, following a $6 million seed round in 2022.
The teams are releasing “Razer ID verified by World ID,” which is a single sign-on mechanism that will verify real human gamers from bots.
What are AI bots? AI bots are self-learning software that automates and continuously refines crypto cyberattacks, making them more dangerous than traditional hacking methods.At the heart of today’s AI-driven cybercrime are AI bots — self-learning software programs designed to process vast amounts of data, make independent decisions, and execute complex tasks without human intervention. While these bots have been a game-changer in industries like finance, healthcare and customer service, they have also become a weapon for cybercriminals, particularly in the world of cryptocurrency.Unlike traditional hacking methods, which require manual effort and technical expertise, AI bots can fully automate attacks, adapt to new cryptocurrency security measures, and even refine their tactics over time. This makes them far more effective than human hackers, who are limited by time, resources and error-prone processes.Why are AI bots so dangerous?The biggest threat posed by AI-driven cybercrime is scale. A single hacker attempting to breach a crypto exchange or trick users into handing over their private keys can only do so much. AI bots, however, can launch thousands of attacks simultaneously, refining their techniques as they go.Speed: AI bots can scan millions of blockchain transactions, smart contracts and websites within minutes, identifying weaknesses in wallets (leading to crypto wallet hacks), decentralized finance (DeFi) protocols and exchanges.Scalability: A human scammer may send phishing emails to a few hundred people. An AI bot can send personalized, perfectly crafted phishing emails to millions in the same time frame.Adaptability: Machine learning allows these bots to improve with every failed attack, making them harder to detect and block.This ability to automate, adapt and attack at scale has led to a surge in AI-driven crypto fraud, making crypto fraud prevention more critical than ever.In October 2024, the X account of Andy Ayrey, developer of the AI bot Truth Terminal, was compromised by hackers. The attackers used Ayrey’s account to promote a fraudulent memecoin named Infinite Backrooms (IB). The malicious campaign led to a rapid surge in IB’s market capitalization, reaching $25 million. Within 45 minutes, the perpetrators liquidated their holdings, securing over $600,000. How AI-powered bots can steal cryptocurrency assets AI-powered bots aren’t just automating crypto scams — they’re becoming smarter, more targeted and increasingly hard to spot.Here are some of the most dangerous types of AI-driven scams currently being used to steal cryptocurrency assets:1. AI-powered phishing botsPhishing attacks are nothing new in crypto, but AI has turned them into a far bigger threat. Instead of sloppy emails full of mistakes, today’s AI bots create personalized messages that look exactly like real communications from platforms such as Coinbase or MetaMask. They gather personal information from leaked databases, social media and even blockchain records, making their scams extremely convincing. For instance, in early 2024, an AI-driven phishing attack targeted Coinbase users by sending emails about fake cryptocurrency security alerts, ultimately tricking users out of nearly $65 million.Also, after OpenAI launched GPT-4, scammers created a fake OpenAI token airdrop site to exploit the hype. They sent emails and X posts luring users to “claim” a bogus token — the phishing page closely mirrored OpenAI’s real site. Victims who took the bait and connected their wallets had all their crypto assets drained automatically.Unlike old-school phishing, these AI-enhanced scams are polished and targeted, often free of the typos or clumsy wording that is used to give away a phishing scam. Some even deploy AI chatbots posing as customer support representatives for exchanges or wallets, tricking users into divulging private keys or two-factor authentication (2FA) codes under the guise of “verification.”In 2022, some malware specifically targeted browser-based wallets like MetaMask: a strain called Mars Stealer could sniff out private keys for over 40 different wallet browser extensions and 2FA apps, draining any funds it found. Such malware often spreads via phishing links, fake software downloads or pirated crypto tools.Once inside your system, it might monitor your clipboard (to swap in the attacker’s address when you copy-paste a wallet address), log your keystrokes, or export your seed phrase files — all without obvious signs.2. AI-powered exploit-scanning botsSmart contract vulnerabilities are a hacker’s goldmine, and AI bots are taking advantage faster than ever. These bots continuously scan platforms like Ethereum or BNB Smart Chain, hunting for flaws in newly deployed DeFi projects. As soon as they detect an issue, they exploit it automatically, often within minutes. Researchers have demonstrated that AI chatbots, such as those powered by GPT-3, can analyze smart contract code to identify exploitable weaknesses. For instance, Stephen Tong, co-founder of Zellic, showcased an AI chatbot detecting a vulnerability in a smart contract’s “withdraw” function, similar to the flaw exploited in the Fei Protocol attack, which resulted in an $80-million loss. 3. AI-enhanced brute-force attacksBrute-force attacks used to take forever, but AI bots have made them dangerously efficient. By analyzing previous password breaches, these bots quickly identify patterns to crack passwords and seed phrases in record time. A 2024 study on desktop cryptocurrency wallets, including Sparrow, Etherwall and Bither, found that weak passwords drastically lower resistance to brute-force attacks, emphasizing that strong, complex passwords are crucial to safeguarding digital assets.4. Deepfake impersonation botsImagine watching a video of a trusted crypto influencer or CEO asking you to invest — but it’s entirely fake. That’s the reality of deepfake scams powered by AI. These bots create ultra-realistic videos and voice recordings, tricking even savvy crypto holders into transferring funds. 5. Social media botnetsOn platforms like X and Telegram, swarms of AI bots push crypto scams at scale. Botnets such as “Fox8” used ChatGPT to generate hundreds of persuasive posts hyping scam tokens and replying to users in real-time.In one case, scammers abused the names of Elon Musk and ChatGPT to promote a fake crypto giveaway — complete with a deepfaked video of Musk — duping people into sending funds to scammers. In 2023, Sophos researchers found crypto romance scammers using ChatGPT to chat with multiple victims at once, making their affectionate messages more convincing and scalable.Similarly, Meta reported a sharp uptick in malware and phishing links disguised as ChatGPT or AI tools, often tied to crypto fraud schemes. And in the realm of romance scams, AI is boosting so-called pig butchering operations — long-con scams where fraudsters cultivate relationships and then lure victims into fake crypto investments. A striking case occurred in Hong Kong in 2024: Police busted a criminal ring that defrauded men across Asia of $46 million via an AI-assisted romance scam. Automated trading bot scams and exploits AI is being invoked in the arena of cryptocurrency trading bots — often as a buzzword to con investors and occasionally as a tool for technical exploits.A notable example is YieldTrust.ai, which in 2023 marketed an AI bot supposedly yielding 2.2% returns per day — an astronomical, implausible profit. Regulators from several states investigated and found no evidence the “AI bot” even existed; it appeared to be a classic Ponzi, using AI as a tech buzzword to suck in victims. YieldTrust.ai was ultimately shut down by authorities, but not before investors were duped by the slick marketing. Even when an automated trading bot is real, it’s often not the money-printing machine scammers claim. For instance, blockchain analysis firm Arkham Intelligence highlighted a case where a so-called arbitrage trading bot (likely touted as AI-driven) executed an incredibly complex series of trades, including a $200-million flash loan — and ended up netting a measly $3.24 in profit.In fact, many “AI trading” scams will take your deposit and, at best, run it through some random trades (or not trade at all), then make excuses when you try to withdraw. Some shady operators also use social media AI bots to fabricate a track record (e.g., fake testimonials or X bots that constantly post “winning trades”) to create an illusion of success. It’s all part of the ruse.On the more technical side, criminals do use automated bots (not necessarily AI, but sometimes labeled as such) to exploit the crypto markets and infrastructure. Front-running bots in DeFi, for example, automatically insert themselves into pending transactions to steal a bit of value (a sandwich attack), and flash loan bots execute lightning-fast trades to exploit price discrepancies or vulnerable smart contracts. These require coding skills and aren’t typically marketed to victims; instead, they’re direct theft tools used by hackers. AI could enhance these by optimizing strategies faster than a human. However, as mentioned, even highly sophisticated bots don’t guarantee big gains — the markets are competitive and unpredictable, something even the fanciest AI can’t reliably foresee.Meanwhile, the risk to victims is real: If a trading algorithm malfunctions or is maliciously coded, it can wipe out your funds in seconds. There have been cases of rogue bots on exchanges triggering flash crashes or draining liquidity pools, causing users to incur huge slippage losses. How AI-powered malware fuels cybercrime against crypto users AI is teaching cybercriminals how to hack crypto platforms, enabling a wave of less-skilled attackers to launch credible attacks. This helps explain why crypto phishing and malware campaigns have scaled up so dramatically — AI tools let bad actors automate their scams and continuously refine them based on what works.AI is also supercharging malware threats and hacking tactics aimed at crypto users. One concern is AI-generated malware, malicious programs that use AI to adapt and evade detection. In 2023, researchers demonstrated a proof-of-concept called BlackMamba, a polymorphic keylogger that uses an AI language model (like the tech behind ChatGPT) to rewrite its code with every execution. This means each time BlackMamba runs, it produces a new variant of itself in memory, helping it slip past antivirus and endpoint security tools.In tests, this AI-crafted malware went undetected by an industry-leading endpoint detection and response system. Once active, it could stealthily capture everything the user types — including crypto exchange passwords or wallet seed phrases — and send that data to attackers.While BlackMamba was just a lab demo, it highlights a real threat: Criminals can harness AI to create shape-shifting malware that targets cryptocurrency accounts and is much harder to catch than traditional viruses.Even without exotic AI malware, threat actors abuse the popularity of AI to spread classic trojans. Scammers commonly set up fake “ChatGPT” or AI-related apps that contain malware, knowing users might drop their guard due to the AI branding. For instance, security analysts observed fraudulent websites impersonating the ChatGPT site with a “Download for Windows” button; if clicked, it silently installs a crypto-stealing Trojan on the victim’s machine.Beyond the malware itself, AI is lowering the skill barrier for would-be hackers. Previously, a criminal needed some coding know-how to craft phishing pages or viruses. Now, underground “AI-as-a-service” tools do much of the work. Illicit AI chatbots like WormGPT and FraudGPT have appeared on dark web forums, offering to generate phishing emails, malware code and hacking tips on demand. For a fee, even non-technical criminals can use these AI bots to churn out convincing scam sites, create new malware variants, and scan for software vulnerabilities. How to protect your crypto from AI-driven attacks AI-driven threats are becoming more advanced, making strong security measures essential to protect digital assets from automated scams and hacks.Below are the most effective ways on how to protect crypto from hackers and defend against AI-powered phishing, deepfake scams and exploit bots:Use a hardware wallet: AI-driven malware and phishing attacks primarily target online (hot) wallets. By using hardware wallets — like Ledger or Trezor — you keep private keys completely offline, making them virtually impossible for hackers or malicious AI bots to access remotely. For instance, during the 2022 FTX collapse, those using hardware wallets avoided the massive losses suffered by users with funds stored on exchanges.Enable multifactor authentication (MFA) and strong passwords: AI bots can crack weak passwords using deep learning in cybercrime, leveraging machine learning algorithms trained on leaked data breaches to predict and exploit vulnerable credentials. To counter this, always enable MFA via authenticator apps like Google Authenticator or Authy rather than SMS-based codes — hackers have been known to exploit SIM swap vulnerabilities, making SMS verification less secure.Beware of AI-powered phishing scams: AI-generated phishing emails, messages and fake support requests have become nearly indistinguishable from real ones. Avoid clicking on links in emails or direct messages, always verify website URLs manually, and never share private keys or seed phrases, regardless of how convincing the request may seem.Verify identities carefully to avoid deepfake scams: AI-powered deepfake videos and voice recordings can convincingly impersonate crypto influencers, executives or even people you personally know. If someone is asking for funds or promoting an urgent investment opportunity via video or audio, verify their identity through multiple channels before taking action.Stay informed about the latest blockchain security threats: Regularly following trusted blockchain security sources such as CertiK, Chainalysis or SlowMist will keep you informed about the latest AI-powered threats and the tools available to protect yourself. The future of AI in cybercrime and crypto security As AI-driven crypto threats evolve rapidly, proactive and AI-powered security solutions become crucial to protecting your digital assets.Looking ahead, AI’s role in cybercrime is likely to escalate, becoming increasingly sophisticated and harder to detect. Advanced AI systems will automate complex cyberattacks like deepfake-based impersonations, exploit smart-contract vulnerabilities instantly upon detection, and execute precision-targeted phishing scams. To counter these evolving threats, blockchain security will increasingly rely on real-time AI threat detection. Platforms like CertiK already leverage advanced machine learning models to scan millions of blockchain transactions daily, spotting anomalies instantly. As cyber threats grow smarter, these proactive AI systems will become essential in preventing major breaches, reducing financial losses, and combating AI and financial fraud to maintain trust in crypto markets.Ultimately, the future of crypto security will depend heavily on industry-wide cooperation and shared AI-driven defense systems. Exchanges, blockchain platforms, cybersecurity providers and regulators must collaborate closely, using AI to predict threats before they materialize. While AI-powered cyberattacks will continue to evolve, the crypto community’s best defense is staying informed, proactive and adaptive — turning artificial intelligence from a threat into its strongest ally.
Despite the crypto 'Trump bump' at the end of 2024, deal flow still favors Artificial Intelligence. But is there a new preference for AI over crypto?
Currently, running open-source AI models locally is merely an awkward alternative to the ease of using cloud-based services like ChatGPT, Claude, Gemini, or Grok. However, running models directly on personal devices rather than sending information to centralized servers offers enhanced security for sensitive information processing and will become increasingly important as the AI industry scales. […]
The post Google’s Gemma 3 makes home AI a reality with new open-source model appeared first on CryptoSlate.
Research shows that AI computational power has doubled every 3.4 months since 2012, compared to the two-year cycle defined by Moore’s Law. This accelerated pace breaks from traditional computing’s predictable path. Nvidia CEO Jensen Huang characterized AI’s progression as closer to “Moore’s Law squared.” Practically, AI has advanced approximately 100,000x within a decade, a pace […]
The post AI growth outpaces Moore’s Law, soaring beyond traditional limits appeared first on CryptoSlate.
Early AI agent implementations in the crypto space primarily leveraged automated social chat functions, sentiment analysis and surface-level on-chain analysis. These initial developments, referred to here as the “first wave,” laid the groundwork for conversational AI within platforms such as X, enabling tasks from content moderation, user engagement and on-chain data retrieval. The sector then […]
The North American Securities Administrators Association (NASAA) has identified crypto and social media scams as significant risks to retail investors in 2025, according to a March 6 statement. This alert follows a survey conducted among state and provincial regulators across the United States and Canada. NASAA President and Wisconsin Securities Administrator Leslie Van Buskirk pointed […]
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From attention to intention, AI agents and blockchain technology can create a more user-centric, intent-driven digital ecosystem.
The deal is valued at $1.7 billion, The Information reported.
Learn how to build a ChatGPT-powered AI trading bot for crypto and stocks, covering strategy selection, model training, trade execution, risk management and automation.
The bitcoin miner held over 10,000 bitcoin at the end of last year.
Finance veteran to succeed Denise Sterling as CFO, shares are up 2% in pre-market trading.
The collaboration could democratize AI access, fostering innovation and inclusivity while challenging traditional paid AI service models globally.
The post NEAR AI and Coinbase join forces to make AI free and accessible for billions appeared first on Crypto Briefing.
El Salvador has introduced a new artificial intelligence (AI) law to foster innovation while ensuring responsible development and regulatory oversight. On Feb. 28, the country’s National Bitcoin Office confirmed the legislation’s approval, highlighting its role in integrating AI into key sectors while maintaining data security and ethical standards. This new legal framework establishes clear guidelines […]
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The launch of GPT-4.5 highlights the growing demand for advanced AI, pushing infrastructure limits and signaling a shift in AI accessibility.
The post GPT-4.5 to launch in plus tier next week: Sam Altman appeared first on Crypto Briefing.
Crypto and AI firm Olas is making it easier for AI agents to collaborate.
Team Rizzo, which operates Bittensor subnets and validator services, has snagged $25 million in on-chain cover from Native, a digital asset insurance specialist.
The expansion will significantly increase Core Scientific’s AI and cloud computing capacity and increase total projected revenue to $10.2 billion over 12-year contract terms.
Tether CEO Paolo Ardoino discussed the company’s digital dollar, AI development, and brain-computer interfaces in an interview with Black Box, which he says is “probably the podcast I’m most proud of. It talks about… the risks for our society and humanity. ” Initially broadcast in his native Italian, Ardoino began by explaining how Tether uses blockchain to […]
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AI agents' integration into blockchain could democratize access, streamline user experience, and foster new economic models in Web3.
The post AI Agents take center stage at ETHDenver 2025 with Hedera and Olas appeared first on Crypto Briefing.
As the transformative technology evolves, the opportunity for Web3 to play a significant role is growing rapidly.
Public bitcoin miners are rushing to build AI business lines, but there’s still room for their original mandate, says this investment bank analyst.
Cardano founder Charles Hoskinson believes Artificial General Intelligence (AGI) could emerge within three to five years, marking a transformative moment in AI evolution. In a Feb. 19 post on X, Hoskinson said: “I’d say we are 3-5 years away from AGI.” AGI represents a significant leap in AI evolution. Unlike current models, AGI would possess […]
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Ethereum transactions burning over 500 ETH and sending 591 ETH to WikiLeaks drew attention on Tuesday. Blockchain data show that an account identified as “Hu Lezhi” executed a series of transfers that included donations to WikiLeaks-designated addresses, transfers to null addresses representing token burns, and payments to grant providers. The transactions, totaling over 1,000 ETH […]
The post User burns 600 ETH to send sci-fi message warning of Chinese use of brain control devices appeared first on CryptoSlate.
BNB Chain's AI integration could revolutionize user interaction, enhancing trading and financial management through advanced automation.
The post CZ hints at upcoming BNB Chain AI agent tutorial appeared first on Crypto Briefing.
While AI can enhance financial forecasting and decision-making, its ability to prevent the next financial crisis remains uncertain due to complexities like unpredictable events.
Riot also announced it has hired investment banks Evercore and Northland Capital Markets to lead discussions with potential AI and HPC partners.
OpenAI's streamlined AI offerings could enhance accessibility and user satisfaction, potentially accelerating AI adoption across various sectors.
The post Sam Altman’s GPT-5 launching in ‘weeks / months’ as OpenAI focuses on friendlier experience appeared first on Crypto Briefing.