Polygon Founder Warns of Sophisticated Deepfake Scams Targeting Crypto Founders

Polygon Founder Warns of Deepfake Scams Using His Likeness

Sandeep Nailwal, co-founder of Polygon, has issued a stark warning about an ongoing scam that’s unnervingly personal: deepfake technology impersonating him and other Polygon executives to deceive unsuspecting crypto founders.

• Deepfake scams using Polygon executives’ likeness
• Scammers hack Telegram accounts to target crypto founders
• Victims urged to install malicious software during Zoom calls
• Over $200 million lost to deepfake fraud in Q1 2025

The scam kicks off with hackers seizing control of the Telegram account of Polygon Ventures lead Shreyansh Singh. They then reach out to crypto founders and portfolio companies, luring them into Zoom meetings with promises of business opportunities. Once in the meeting, victims encounter disturbingly realistic deepfakes of Nailwal and other Polygon executives, with the scammers’ audio conveniently “disabled.” The victims are then persuaded to install what they think is a legitimate software tool (often referred to as an SDK), but it’s actually malware designed to pilfer their cryptocurrencies.

Prasad Kaavya, co-founder of Rabble, and Swaroop Hedge, co-founder of Powerloom protocol, are among those who have been targeted by this ruse. Kaavya shared a chilling insight, “Here’s the scary part: If I wasn’t personally connected to these people, I might have trusted the deepfake.” Hedge also noted the deepfakes’ uncanny ability to mimic real people, underscoring the sophistication of these attacks.

The financial toll of deepfake fraud is staggering. Over $200 million was lost to such scams in the first quarter of 2025 alone. A Telegram scammer group, as highlighted by security researcher Tayvano, reportedly raked in over $50 million using similar tactics. Despite these alarming figures, no confirmed reports of funds being stolen from victims have surfaced in this specific scam involving Polygon executives, but the potential for loss remains high.

Understanding Deepfake Scams

Deepfake technology uses AI to create or manipulate video and audio content, making it appear as if someone is saying or doing something they never did. In the context of scams, deepfakes are used to impersonate trusted individuals, like Nailwal, to convince victims to take actions that compromise their security. Their effectiveness lies in their ability to convincingly replicate facial expressions, voice tones, and even subtle mannerisms, making them difficult to distinguish from genuine content.

Real-World Examples

Imagine you’re a crypto founder invited to a Zoom call by someone you believe to be Sandeep Nailwal. The meeting starts, and there he is, looking and sounding just like the real deal. You’re asked to install a software tool to further discuss a business proposal, only to later realize you’ve been duped. This scenario is not far-fetched; it’s precisely what victims like Kaavya and Hedge experienced.

Financial Impact

Beyond the immediate threat to individuals, deepfake scams have a broader impact on the crypto community. The $200 million lost in Q1 2025 to deepfake fraud is just a fraction of the total losses due to various crypto scams. These figures highlight the need for vigilance and underscore the evolving nature of cyber threats in the cryptocurrency space.

Security Measures

In response to these threats, Nailwal has provided practical advice to help crypto users stay safe. He recommends avoiding the installation of unsolicited software and using a dedicated laptop solely for managing crypto wallets. As he puts it, “These attacks keep getting more and more sophisticated, so the best approach is to keep a separate laptop for signing via your wallets only from that laptop and never do anything else on that wallet.” By using a laptop exclusively for crypto activities, users can minimize the risk of malware infection from other sources.

Additional security measures include implementing multi-factor authentication, keeping software up to date, and educating oneself on how to spot deepfake content. Tools like deepfake detection software can also provide an extra layer of security.

Broader Implications

The rise of deepfake scams is a wake-up call for the crypto community. As the industry continues to push the boundaries of finance and technology, it’s crucial to stay vigilant against those looking to exploit these advancements for malicious gain. Deepfake technology not only threatens financial loss but also erodes trust within the community. This could have long-term implications for digital interactions and transactions. Moreover, as deepfakes become more prevalent, regulatory bodies may need to develop new frameworks to combat these threats, ensuring that the promise of decentralization and privacy is not undermined by fraudsters.

Key Takeaways and Questions

• What is a deepfake scam?

  A deepfake scam involves the use of AI-generated fake videos or audio to impersonate someone, typically to deceive victims into taking certain actions, like installing malicious software.

• How are scammers targeting crypto founders?

  Scammers are using hacked Telegram accounts to contact crypto founders, inviting them to Zoom meetings where deepfake videos are used to trick them into installing malware.

• What security measures does Sandeep Nailwal recommend?

  Nailwal advises crypto users to avoid installing unsolicited software and to use separate laptops solely for managing crypto wallets to enhance security.

• What are the potential risks of deepfake technology in the crypto industry?

  Deepfake technology poses significant risks such as financial loss due to malware installation, identity theft, and erosion of trust within the crypto community.

• How can individuals protect themselves from deepfake scams?

  Individuals can protect themselves by being cautious of unsolicited meeting requests, not installing unknown software, using dedicated devices for managing sensitive information like crypto wallets, and staying educated on how to spot deepfake content.

“Here’s the scary part: If I wasn’t personally connected to these people, I might have trusted the deepfake.” – Prasad Kaavya

“These attacks keep getting more and more sophisticated, so the best approach is to keep a separate laptop for signing via your wallets only from that laptop and never do anything else on that wallet.” – Sandeep Nailwal