Crypto

Artificial Intelligence Threat To Crypto Underestimated, Says This Influential Analyst: Security Becoming An ‘AI vs AI Arms Race’


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Influential analyst Ali Martinez warned Wednesday of the growing threat artificial intelligence poses to the cryptocurrency industry, citing a surge in AI-driven fraud.

Is Crypto Downplaying AI Threat?

In an X post, Martinez alluded to a January report by on-chain analytics firm Chainalysis, which found AI-enabled scams were 4.5 times more profitable than traditional scams in 2025. AI-related scams also showed greater time-weighed efficiency.

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The report noted that scammers were increasingly using deepfake technology and AI-generated content to create “convincing impersonations” in romance and investment scams.

“A lot of people still underestimate how big of a threat AI is becoming to crypto,” Martinez said.

A lot of people still underestimate how big of a threat AI is becoming to crypto.

Recent industry data shows AI-driven fraud reached $17B in 2025, with some scam models reportedly achieving success rates above 70%.

What’s interesting is that platforms are now responding the… pic.twitter.com/ael9vrIIlW

— Ali Charts (@alicharts) May 13, 2026

Using AI To Counter AI?

Martinez then pointed to an “AI vs. AI arms race,” with big cryptocurrency platforms “responding the same way attackers are evolving.

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Notably, Binance, the world’s largest cryptocurrency exchange, said earlier this week that more than half of its fraud controls are AI-powered. The platform stated that it rolled out more than 24 AI-driven initiatives and over 100 AI models to counter emerging threats.

A Double-Edged Sword?

BitMEX co-founder Arthur Hayes said earlier this week that an AI-driven economic shock could become the catalyst that sends Bitcoin and cryptocurrency into another major bull cycle.

He argued that governments will ultimately respond to any AI-driven downturn the same way they responded to prior crises, by expanding credit and printing money, ultimately benefiting Bitcoin.

Photo Courtesy: Bigboss101 on Shutterstock.com

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