Identity Checks on Crypto Exchanges at Risk of AI

Identity Checks on Crypto Exchanges at Risk of AI

Because of the rise of artificial intelligence (AI), there is concern about identity verification on crypto exchanges. This is because AI is making it easier to produce forged identity documents. DeepFakes, as they are often known, have recently been a prominent topic of discussion on social media. These deepfakes may appear real, yet they are created by AI technology.

Deepfakes function by feeding them information about the face you wish to imitate. Then they use generative models to match one face as nearly as possible to the other. Furthermore, they match their emotions and facial gestures to make it more lifelike. This is truly disturbing, but it is also an intriguing issue to delve into.

Changpeng Zhao, the CEO of Binance, has sounded the alarm about this particular issue. He urged viewers not to trust videos, even if they appear to be real because AI can make convincing phony ones. Binance and other exchanges utilize videos to verify users’ identities before granting them access to specific features on the platform. Ai may be able to get around this by developing a realistic representation of someone’s face.

HeyGen, an AI company, has created a tool that can build lifelike digital avatars in just two minutes. These avatars have the appearance and voice of actual humans. They are, however, entirely AI created. This might cause major issues for exchanges such as Binance and other platforms that rely on this type of verification.  Many users can now avoid this confirmation by utilizing AI.

Tools like this could enable unscrupulous actors to deceive exchanges by utilizing false videos that appear legitimate. This could lead to problems with people stealing Bitcoin or engaging in unlawful behavior on the exchanges. HeyGen’s CEO stated that their AI tool will soon be available to the public, which means that anyone can use it to create phony videos.


This AI deepfake technology poses a severe threat in the area of digital currency, where security is critical. Exchanges will need to develop new methods of verifying users’ identities that are more difficult to forge with AI. As technology advances, it is critical for both crypto exchanges and blockchain users to remain vigilant and knowledgeable about potential threats.



About Ron Fetahu

I'm Ron, an experienced content writer who is passionate about creating captivating and impactful articles. I take pride in my writing style, as I can adapt it to suit various industries and topics. I also believe in the power of words to inform, inspire, and engage.

Related Posts