AI-Generated Identities Used to Defraud FTX Claims Buyers of $5.6M
Data analytics firm Inca Digital reported that a fraudster or group using AI-deepfake technology and fake identities deceived two companies into purchasing counterfeit FTX liquidation claims, stealing $5.6 million. The perpetrators reportedly accessed legitimate bankruptcy data and funneled stolen funds through multiple cryptocurrency exchanges to obscure their origin.
What happened
Beginning in June 2024, a fraudster or group of fraudsters used AI-generated deepfaked video calls to pose as FTX debt claimants and sold counterfeit liquidation claims to two companies. The scammers used aliases including Lim Chee Chong and Teh Jin Loon, and their photos reportedly resembled images of Kurtis Lau Wai-kin, a former professional gamer imprisoned for drug trafficking.
The perpetrators provided fake Singaporean ID cards with visual discrepancies and false addresses while supplying real claim data, which investigators believe was obtained from public FTX bankruptcy filings or through a 2023 data breach at Kroll, the company managing FTX's bankruptcy claims. The stolen funds of $5.6 million were moved through international cryptocurrency exchanges including Binance, CoinEx, and Gate.io to conceal their origin.
Reported impact
Two companies were defrauded of more than $5.6 million through the sale of fraudulent FTX debt claims.
Index analysis
The scam exploited the timing of FTX's liquidation payout process, which was scheduled to begin on February 18, 2025. The perpetrators leveraged AI deepfake technology to disguise their identity and create false credentials, demonstrating an emerging sophistication in cryptocurrency fraud schemes that could increase as AI tools become more accessible.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.