Bitget's latest report reveals a staggering 245% surge in deepfake-related crypto fraud, resulting in over $79.1 billion in losses since 2022. This alarming trend highlights the growing threat of artificial intelligence (AI) technology being exploited for malicious purposes in the cryptocurrency space.

According to the report, deepfake crimes could reach around $10 billion in quarterly losses by 2025, with 2024 projected to end with $25.13 billion in such crimes. Bitget's CEO, Gracy Chen, emphasizes that deepfakes are "moving into the crypto sector in force" and that user vigilance and awareness are currently the most effective defense against these scams.

The report also reveals that social engineering and bot fraud accounted for 14.21% of deepfake crimes in Q1 2024, resulting in $2.03 billion in losses. Furthermore, the analysts project a 70% surge in crypto deepfake crimes by early 2026, warning that without regulatory intervention, financial losses from deepfakes are likely to continue increasing.

This report underscores the urgent need for the cryptocurrency industry and regulatory bodies to address the growing threat of deepfake-enabled fraud and implement comprehensive measures to protect investors and the broader financial ecosystem.