How do deepfakes threaten centralized crypto exchanges?

[kevin1]

Centralized exchanges (CEXs) often rely on visual identity verification during onboarding, such as selfies, video recordings, or live facial checks. As deepfake technology improves, these methods are becoming less reliable. Simple actions like blinking, smiling, or turning one’s head — once used to confirm liveness — can now be convincingly replicated by AI.

This creates a growing risk of fraud, including fake account creation, identity theft, and illicit financial activity. Because crypto platforms operate globally and at scale, they are especially attractive targets if their verification systems fail to keep pace with AI-driven deception.

[etfs]

if they dont fix this soon regulators are gonna do it for them

[Revenant]

Liveness checks are already outdated.

[Capybara_Capybara]

AI is breaking KYC faster than expected.

[The_Walking_Dead]

This is a ticking compliance bomb.