Last year, a user was hacked by criminals using AI face-swapping technology to steal $2 million related to Huaiwang.

Recently, The New York Times reported on Huaiwang, Cambodia's cryptocurrency empire, which is the largest money laundering pipeline in the world. It mentioned that advancements in artificial intelligence have made identity forgery easier, with some individuals even using AI face-swapping technology for gray and black market activities.

In 2024, hackers utilized AI synthesis imaging technology (AI face-swapping) to deeply fake KYC information, changing a certain platform user's password and stealing over $2 million. There are also claims that the amount involved in such AI face-swapping thefts from exchange users is far greater and involves multiple exchanges.

It is reported that the black market team was based in Hong Kong, China, and was related to the Huaiwang organization, having connections with telecom companies in some regions to bypass mobile verification codes, thus circumventing KYC and passwords. After the incident, the main members of the team have gone into hiding.

Additionally, blogger @thecryptoskanda introduced that the accumulation of AI technology in the gray market industry is deeper and earlier than some publicly funded AI Web2 star projects in North America and China. Furthermore, due to years of data training from offensive and defensive combat, some advanced AI tools in the gray and black markets are several orders of magnitude more efficient and targeted. They can also infiltrate leading AI companies in both China and the U.S., as they can continuously afford to pay, while many so-called AI star companies only have valuations but lack cash. $BTC