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DeepSeek Under Attack: Fake Tokens Surge Amid Viral AI Craze

Scammers exploit the DeepSeek viral AI success with sophisticated fake tokens and DApps, draining wallets and amassing millions in fraudulent market capitalization.

Author

Steven Walgenbach
January 28, 2025

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Breaking Crypto Stories

Here are the top stories today:

  • Scam Tokens Surge as DeepSeek AI Goes Viral

  • Bitfarms Sells Paraguay Site to Hive for $85M, Refocuses on US

  • Poland Surpasses El Salvador to Become the Fifth-Largest Bitcoin ATM Network Globally

  • Austrian Fintech Unicorn Bitpanda Secures MiCA License to Operate Across Europe

  • Crypto ETPs Surge Following Trump’s Strategic Crypto Reserve Proposal

Question of the Day

Will DeepSeek AI replace OpenAI?

Scam tokens impersonating DeepSeek surged in response to the Chinese AI company's viral success, with sophisticated tactics luring users and resulting in millions in fraudulent market capitalization.

  • Over 75 fraudulent "DeepSeek" tokens were created within 24 hours, a threefold increase, mirroring similar spikes seen with other trending narratives like Trump's memecoin.

  • Scammers have developed fake decentralized applications (DApps) mimicking DeepSeek’s website to exploit users, showcasing the increasing sophistication of crypto scams.

  • Despite DeepSeek’s warnings that it has not issued any cryptocurrency, some fake tokens reached market capitalizations of $48M and $13M, highlighting the urgency for vigilance.

Bitfarms is selling its largest Bitcoin mining facility in Paraguay to Hive Digital Technologies for $85 million, redirecting funds to expand its operations in the US and shift focus toward high-performance computing and AI.

  • Bitfarms is selling its 200 MW Yguazu facility in Paraguay to Hive Digital Technologies for $85 million, marking a strategic shift toward North America.

  • Proceeds from the sale will be reinvested into Bitfarms' 1 GW growth pipeline in the US, focusing on Bitcoin mining and HPC/AI infrastructure.

  • The move aligns with Bitfarms' plan to rebalance its portfolio to 80% North American operations, reduce mining capacity by 21%, and cut power costs by 10% by the end of 2025.

Poland installed 10 new Bitcoin ATMs, surpassing El Salvador as the fifth-largest Bitcoin ATM network globally with 219 active machines.

  • Poland has overtaken El Salvador as the fifth-largest Bitcoin ATM network globally, with 219 active machines following a four-month installation streak adding 24 ATMs since October 2024.

  • El Salvador's stagnation in expanding its Bitcoin ATM network since October 2022 has allowed other nations like Poland to surpass its once-leading position.

  • The global Bitcoin ATM landscape now boasts approximately 38,100 active machines across 65 countries, emphasizing the growing role of crypto ATMs in increasing accessibility despite regulatory concerns.

Bitpanda becomes the second crypto firm to secure Germany’s BaFin-issued MiCA license, enabling seamless operations across all 27 EU member states.

  • Bitpanda secures a MiCA license, becoming the second crypto firm authorized by Germany's BaFin to operate across all 27 EU member states under the new regulatory framework.

  • CEO Eric Demuth emphasizes enforcement, urging EU lawmakers to adopt a robust regulatory approach to ensure compliance and global competitiveness, drawing inspiration from the US.

  • MiCA aims to legitimize cryptocurrency operations, fostering adoption while balancing regulation and innovation to position the EU as a global crypto hub.

Crypto ETPs recorded $1.9 billion in inflows last week, driven by Trump’s crypto reserve proposal. 

  • Crypto ETPs saw a $1.9 billion inflow, driven by President Trump’s strategic crypto reserve proposal, with Bitcoin-based ETPs capturing $1.6 billion and 92% of YTD inflows.

  • Bitcoin ETPs dominate the market, achieving a historic all-time high of $109,000 and driving total crypto ETP assets under management (AUM) to $171 billion, with Ethereum and other altcoin ETPs also contributing.

  • Trump’s executive order boosts confidence, aligning with institutional adoption trends and positioning crypto ETPs as pivotal investment tools bridging traditional finance and digital assets.

ICYMI:

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