A sinister deepfake scam has rocked the crypto world, targeting Polygon co-founder Sandeep Nailwal’s digital identity. Fraudsters hacked Polygon Ventures accounts and used AI-generated videos to conduct fake Zoom meetings, complete with glitchy audio to mask the deception. The sophisticated operation has already swindled Web3 startups out of $200 million in early 2025. Yeah, it’s pretty bad. The intricate details of this high-tech heist reveal an unsettling glimpse into crypto’s dark underbelly.
As scammers grow bolder in the crypto world, they’ve set their sights on a major target. Polygon co-founder Sandeep Nailwal recently sounded the alarm about sophisticated fraudsters using AI-generated deepfakes of his likeness to con startup founders. Welcome to the future of fraud, folks – where your Zoom call might not be with who you think it is.
The scam is deviously clever. First, these tech-savvy criminals hack into Polygon Ventures accounts, including investment head Shreyansh Singh’s Telegram. Then they reach out to startup founders, dangling the carrot of potential investment talks. The cherry on top? Fake Zoom meetings featuring an eerily realistic digital clone of Nailwal himself. The audio’s conveniently “broken” – how convenient. The rising threat has contributed to losses over $200 million in the first quarter of 2025 alone.
Scammers weaponize AI deepfakes and hacked accounts to orchestrate elaborate investment fraud, preying on hopeful crypto startups through fake video calls.
Here’s where it gets nasty. During these calls, victims are pressured to install what’s supposedly an SDK to fix technical issues. Spoiler alert: it’s malware. These fraudsters are playing chess while their victims are playing checkers, exploiting the desperate hunt for funding that plagues many Web3 startups. The scammers specifically target previous contacts who have had legitimate investment discussions with Polygon.
The whole operation runs like a well-oiled machine. The attackers leverage compromised internal accounts, familiar communication channels, and the natural trust that exists in the startup ecosystem. It’s a masterclass in social engineering, minus the ethics. The hyper-realistic AI videos are just realistic enough to fool someone who’s excited about a potential investment deal.
Nailwal isn’t taking this lying down. He’s gone public with warnings, emphasizing the growing sophistication of these attacks. The incident has sent shockwaves through the crypto community, highlighting how AI technology is giving scammers dangerous new tools. What used to require elaborate impersonation schemes can now be done with a few clicks and some sophisticated software.
The damage goes beyond immediate financial losses. These attacks are eroding trust in legitimate investment processes and making everyone second-guess every video call. In an industry built on innovation and trust, that’s a problem that won’t be solved with a simple software update.
