The co-founder and former CEO of crypto exchange Binance, Changpeng Zhao, has issued a warning to the general public and the cryptocurrency community regarding the emergence of numerous deepfake videos created by artificial intelligence and their potential to trick gullible and unsuspecting users into false or fraudulent advertisements cryptocurrency investments.
A public warning against AI deepfakes
Zhao further elaborated on the imminent threat of AI impersonation and fraud in cyberspace. Zhao’s warning follows the increasing AI fraud that is affecting not only the crypto world, but also international giants like Brad Garlinghouse, CEO of Ripple, and even famous celebrities like Taylor Swift.
Former Binance CEO warns of deepfake scams on social media
Former Binance CEO Changpeng Zhao (CZ) posted on X warning users about deepfake videos of him circulating on other social media platforms. He urged users to be cautious of possible scams associated with these videos.
— Coinness Global (@CoinnessGL) October 11, 2024
Such scams aim to trick users into investing in risky schemes that put them at risk of losing money and exposing their identities, increasing the urgency for more education about artificial intelligence through the right channels and media.
Zhao’s revival and the future of Binance
Zhao made strategic plans during his recent speech. He is expected to participate in Binance Blockchain Week in Dubai shortly after resolving his legal battles with the US Department of Justice. It will be his first major engagement and performance since temporarily stepping down.
Zhao served four months in prisonafter pleading guilty to violating U.S. anti-money laundering laws at the world’s largest cryptocurrency exchange.
Zhao’s return signals his seriousness in the blockchain space, focusing on innovation and sustainable leadership. With Zhao back at the helm, Binance will continue its path of research and development blockchain technology but also faces the challenges of regulation and integration in leading the sector.
The double-edged sword that is Blockchain and AI
While AI contributes to more secure and efficient blockchains, it has also fueled and enabled new threats. Zhao’s warning concerns the mishandled activity of AI in generating deepfakes, which is creating more attention to warn the community. This requires responsible development and education in AI from and within the crypto space.
Blockchain projects that grow and expand and gain scale and influence require a balance between innovation and security. The right use of AI could revolutionize industries, while unchecked misuse of such technology could lead to devastating consequences, requiring an immediate response from developers and the community.
Featured image from WIRED, chart from TradingView