Fraudsters used AI deepfake technology to steal at least $5.6 million from companies by selling fake FTX liquidation claims through sophisticated video calls and forged credentials.
A sophisticated fraud scheme involving deepfake technology resulted in the theft of at least $5.6 million from companies purchasing fake FTX liquidation claims. The scam was uncovered by Inca Digital ahead of FTX's scheduled payouts on February 18, 2025. The fraudster or group of fraudsters used artificial intelligence to generate deepfake video calls, impersonating legitimate claim holders under aliases Lim Chee Chong and Teh Jin Loon. The perpetrators provided fake credentials, false addresses in Singapore, and used real claim data likely obtained from public sources or leaked databases tied to the FTX bankruptcy. In June 2024, the scammer contacted two unnamed companies regarding the sale of FTX claims, and despite due diligence verification, both companies were defrauded. Kroll, the company managing FTX's bankruptcy claims, later informed both companies they had been defrauded. The stolen funds were rapidly laundered through international cryptocurrency exchanges including Binance, Gate.io, and CoinEx. Investigation revealed suspicious random movements in the perpetrator's face during due diligence call recordings, and photos closely matched those of Kurtis Lau Wai-kin, a former professional League of Legends player currently imprisoned. The case highlights growing risks of AI-driven financial fraud in the cryptocurrency industry.
Domain classification, causal taxonomy, severity scores, and national security assessments were LLM-classified and may contain errors.
Using AI systems to gain a personal advantage over others such as through cheating, fraud, scams, blackmail or targeted manipulation of beliefs or behavior. Examples include AI-facilitated plagiarism for research or education, impersonating a trusted or fake individual for illegitimate financial benefit, or creating humiliating or sexual imagery.
Human
Due to a decision or action made by humans
Intentional
Due to an expected outcome from pursuing a goal
Post-deployment
Occurring after the AI model has been trained and deployed