HISPI Project Cerebellum HISPI PROJECT CEREBELLUM

Alleged Use of Purported AI-Generated Identities to Defraud FTX Claims Buyers of $5.6M

February 18, 2025

An individual or group is accused of using AI-based face manipulation tools to deceive FTX claimants during video conferences, potentially defrauding two companies out of over $5.6 million in the secondary claims market. The suspect allegedly employed forged IDs and deepfake-style visuals, with claim data possibly sourced from public records or a previous Kroll breach. Funds were suspected to have been laundered through various exchanges such as Binance, CoinEx, and Gate.io.

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Matched TAIM controls

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Alleged deployer
fraudster-using-aliases-lim-chee-chong-and-teh-jin-loon
Alleged developer
unnamed-providers-of-synthetic-video-generation-software, unknown-deepfake-technology-developers
Alleged harmed parties
two-unnamed-companies-that-purchased-fraudulent-ftx-debt-claims, ftx-estate, kroll, public-trust-in-ftx-bankruptcy-claims-resolution-process, cryptocurrency-market-participants-exposed-to-fraudulent-claims-resale, claims-verification-and-due-diligence-infrastructures-in-secondary-debt-markets

Source

Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/1067

Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

Pre-print on arXiv · Database snapshots & citation guide

We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.