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The crypto sector faces a growing wave of AI-enabled fraud and organised financial crime, from deepfake impersonations to large-scale scam schemes masquerading as investment opportunities. The industry’s latest compliance reports show that exchanges are strengthening their defenses through a mix of AI, data-sharing, and regional task forces.
Blockchain analytics firm Elliptic warned that pig-butchering scams have become a “multibillion-dollar industrial operation”, with laundered funds often routed through mule accounts or cross-chain bridges. At the same time, deepfake scams have also emerged as a new frontier where AI-generated videos and voice clones are now being used to bypass KYC systems and approve unauthorized transfers. Recent cases, like the Huione Payments network’s $98 billion laundering operations, have exposed the scale and sophistication of these threats. Against this backdrop, exchanges are being encouraged by law enforcement agencies and users alike to deploy blockchain-native detection systems and share intelligence across jurisdictions.
According to MEXC’s Q3 2025 Risk Control Performance Review, the exchange achieved a 36% reduction in organised crime and blocked over 70,000 illicit activities since the start of its enhanced risk-control initiative in Q2. Its machine learning systems, trained to recognise transactional anomalies, spoofing attempts, and bot-driven market manipulation, have significantly reduced the success rate of fraudulent withdrawals and market manipulation attempts.
The report also cites 593 law enforcement cooperation requests and $4.97 million USDT frozen in illicit assets, revealing the operational scale of MEXC’s compliance response. Fraudulent KYC attempts driven by AI deepfakes were also identified and neutralized.
Regions previously reported to be most affected by crypto scams on the platform, like Southeast Asia, South Asia, and the CIS, saw the steep illicit activity reductions after the deployment of MEXC’s regionalised risk control framework. In Indonesia, incidents fell 72% after enhanced withdrawal verification protocols were introduced. These results align with ongoing government crackdowns on scam compounds across the region. Southeast Asia recorded the most significant decline in malicious activities, dropping by 59% while South Asia and the CIS region recorded a decline of 34% and 31% respectively.
Insights from the report revealed how collaboration and not isolated actions is key to tackling the evolving crypto scam landscape. Exchanges must view fraud prevention as an ecosystem-wide effort rather than a competitive advantage. With AI transforming both crime and detection, the industry’s future depends on decentralized, verifiable, and adaptive security infrastructure — a sentiment echoed by compliance leaders and regulators worldwide.
As crypto-crime becomes more sophisticated, so must the response to it become more adequate to snuff it out. Exchanges like MEXC are positioning their frameworks not just as shields for their own platforms, but as prototypes for the next phase of global digital asset security.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team