Illicit Crypto Flows Hit Record $158 Billion In 2025, TRM Says
Cryptocurrency-related fraud surged to unprecedented levels in 2025, with illicit flows reaching $158 billion, according to blockchain intelligence firm TRM Labs. Scammers Leveraged advanced tools, including large language models, to amplify their schemes—deploying believable messaging, multilingual capabilities, and automated conversations at scale.
Artificial intelligence has become a cornerstone of modern crypto crime. Deepfakes, voice cloning, and AI-generated imagery now enable fraudsters to fabricate convincing personas at minimal cost. These tactics often follow a chilling pattern: establish trust through romance or professional rapport, then pivot to financial demands—whether fake investments, tax threats, or emergency pleas.
The fraud ecosystem has industrialized. Criminal enterprises operate like startups—hiring staff, licensing tools, and recycling scripts across global campaigns. Phishing kits and AI-as-a-service platforms lower barriers to entry, allowing novices to launch sophisticated operations with plug-and-play malware and automated chat systems.
High-profile cases reveal alarming sophistication. Crypto professionals have been duped by AI-generated video calls, where synthetic faces on Zoom meetings delivered malware under the guise of routine software updates. Such breaches demonstrate how rapidly adversarial innovation outpaces defensive measures in digital asset markets.
