Crypto Scammers in Canada Unleash AI Deepfakes, Raking in Millions

Hang onto your wallets, folks! Crypto fraud is exploding in Canada, with scammers pulling out all the stops using slick AI tools to dupe investors, according to the Ontario Securities Commission.

Canada's top securities watchdog is sounding the alarm bells loud and clear about a tsunami of crypto scams. These fraudsters are now deploying high-tech AI deepfakes and bogus trading platforms to bamboozle investors and snatch their cash right from under their noses.

At a fiery annual event on Thursday, Grant Vingoe, the big boss at the Ontario Securities Commission, didn't mince words. He slammed the current scene, saying Canada is caught in a wild west "where there's more scams, more fraud, more insider trading, more corruption, enabled by an atmosphere in which anything goes and the traditional norms are out the window!"

Vingoe pointed the finger at global chaos, saying the "unpredictability of the geopolitical environment creates a playground for the bad guys." Just in 2024, victims have coughed up nearly $640 million, according to the Canadian Anti-Fraud Centre's jaw-dropping stats.

Now, Bonnie Lysyk, the OSC's enforcement heavy-hitter, is gearing up for a showdown. She's laser-focused on "high-impact cases," vowing to "smack down those scam artists early" because, let's face it, "the crypto space is a goldmine for fraud."

Canada started cracking down on these crypto cowboys back in February 2023 when the Canadian Securities Administrators made it mandatory for all crypto trading platforms to sign on the dotted line for pre-registration agreements. That's on top of existing rules, like the big no-no on offering margin trading to Canadians.

And here's the kicker: the CSA says some stablecoins are securities or derivatives, so exchanges are barred from dealing in those without a green light, making it a real headache for many crypto platforms to stay in the game.