On May 27, 2025, Raj Gokal, co-founder of Solana, became a victim of a serious personal data leak when images of identification documents and sensitive information were leaked on Instagram, accompanied by a ransom demand of 40 Bitcoin (BTC), equivalent to about 4.36 million USD (CoinMarketCap, Bitcoin: 108,904 USD). The incident shocked the crypto community and raised significant questions about KYC security and the risk of AI-generated deepfakes. The article summarizes the details of the incident, hypotheses of origin, security risks, and lessons for investors.
Incident Details
The Instagram account of the rap group Migos (now defunct) was hacked and posted sensitive images of Gokal, including a passport, driver's license, and contact information such as phone number and email. A woman, believed to be Gokal's wife, also appeared in the photos with identification. The attacker demanded 40 $BTC , threatening to continue spreading if not met. Previously, Gokal had warned on X (May 20, 2025) about attempts to hijack his email and social media, indicating this was a planned attack.
The incident raises concerns about the origin of leaked data, leading to two main hypotheses:
KYC Vulnerability: Images formatted similarly to the identity verification process on crypto exchanges, where users take pictures holding documents. If real, data could be stolen from an exchange like Coinbase, which was sued in May 2025 in the US (USA) for violating biometric privacy laws related to sharing KYC data with third parties (Reuters).
#Deepfake AI: The images may be counterfeit products generated by AI. In April 2025, podcaster Scott Melker revealed that a scammer used a deepfake to forge his driver's license, stealing 4 million USD (Cointelegraph). Current AI technology, like MidJourney, can create almost perfect fake images, difficult to distinguish.
Security risks in the crypto ecosystem
Gokal's incident highlights serious security risks:
KYC Vulnerability: According to CertiK (2024), 60% of crypto hacks are related to data leaks from KYC systems, causing losses of 2.5 billion USD. Exchanges like Coinbase store sensitive data, but outsourcing data processing increases the risk of leaks.
Deepfake Extortion: AI technology creating deepfakes has increased by 300% from 2023–2024 (Chainalysis), used in scams and extortion. Cases like Melker's demonstrate the ability to manipulate victims' trust.
Personal Attacks: High-profile figures like Gokal are prime targets due to the high value of assets. According to Glassnode, a wallet associated with Solana holds 1.2 billion USD in assets, attracting hackers.
Market Impact: The incident caused Solana's price ($SOL ) to drop 5% in 24 hours, down to 180 USD (CoinMarketCap), reflecting uneasy sentiment.
Risk Management Solutions
To mitigate risks, the following measures are necessary:
Improvement #KYC : The exchange needs to encrypt data and reduce sharing with third parties. Binance uses zero-knowledge proof to verify without storing sensitive data.
Deepfake Detection: Apply AI tools like Sentinel to identify fake images.
Personal Security: Use separate email and phone numbers for crypto accounts, enable 2FA, and store private keys in cold wallets (Ledger).
Regular Audits: Exchanges need to be audited by Big 4 (PwC, Deloitte) to ensure data security.
Impact on the crypto market
The incident has raised concerns about security in the context of rapid crypto growth. With 2.5 million users in the US (Statista, 2025), exchanges like Coinbase face pressure to improve security. However, Solana still has recovery potential, with TradingShot predicting SOL will reach 250 USD by Q4/2025 thanks to network upgrades. The incident also drives investors to seek safe assets like Bitcoin and stablecoins (USDT, USDC).
Lessons for investors
Protect Personal Information: Do not upload identification documents to untrustworthy platforms.
Choose reputable exchanges: Prioritize exchanges with Big 4 audits and strong security, such as Binance.
Monitor Risks: Update hack news via CoinMarketCap, CertiK.
Diversify Portfolio: Combine SOL, BTC, and stablecoins to reduce volatility risk.
Risk Management Suggestions
Use cold wallets (Ledger, Trezor) to store 80% of assets.
Check the exchange's security policy through reports from PwC or Deloitte.
Monitor SOL and BTC prices on CoinMarketCap, forecast via TradingShot.
Risk Warning
Crypto investment, including Bitcoin and Solana, carries high risks due to price volatility and security vulnerabilities. KYC leaks or deepfakes can cause financial and reputational damage. Investors need to protect their data against misconduct such as extortion and conduct thorough research (DYOR). The information in this article is for reference only and does not constitute investment advice.