Recent trends indicate a sharp increase in the adoption of Artificial Intelligence (AI) technologies, posing a new set of challenges for crypto exchanges and their communities in combating scams and illegal undertakings.

The rise of AI has brought about sophisticated methods that could potentially bypass the verification processes of exchanges, making it harder to distinguish between legitimate users and fraudulent entities.

The Commodity Futures Trading Commission (CFTC) has issued warnings about AI-driven crypto scams, particularly those exploiting arbitrage trading strategies, highlighting the urgency in addressing these emerging threats.

As the crypto world continues to evolve, exchanges and regulators must adapt to these advancements in AI to ensure the safety and integrity of their platforms and protect investors from potential scams.