The crypto market is facing a new threat in the form of deepfake scams, which are expected to result in losses of over $25 billion by the end of this year. According to a recent study by Bitget, a crypto derivatives exchange and copy trading platform, deepfake crimes have already resulted in losses of $6.28 billion in the first quarter of this year, which is almost half of the total losses for the entire year of 2022.

Deepfakes are AI-generated fake videos, audio, or photos that are used to impersonate influential figures and gain the trust of crypto users. Scammers use deepfakes to create a false sense of credibility and lure victims into investing in fraudulent projects. The study found that most average crypto users lack the skills to detect deepfakes, making them vulnerable to such scams.

The use of deepfakes in crypto crimes is becoming increasingly sophisticated, and the study warns that quarterly losses may increase to an average of $10 billion by early 2025. The lack of a comprehensive legal and cybersecurity framework on a global scale makes it difficult to combat these crimes. According to Bitget CEO Gracy Chen, "Deepfakes are a major threat to the crypto sector, and education and awareness are key to preventing such crimes."

The study suggests that new techniques for identifying fake photos, videos, and audio materials are needed to mitigate losses resulting from deepfake usage. The development of corporate solutions for deepfake detection has not been effective in preventing such crimes, and the competition between fraudsters and security solution providers continues.

In conclusion, the rise of deepfake scams in the crypto market is a cause for concern, and it is essential for crypto users to be aware of these scams and take necessary precautions to prevent losses. Education and awareness are key to preventing such crimes, and the development of effective solutions to detect and prevent deepfakes is crucial to maintaining the integrity of the crypto market.