Deepfake Dangers Escalate: Polygon Co-Founder Sandeep Nailwal’s Identity Misused in Crypto Scam
In a startling revelation that underscores the growing sophistication of cybercrimes in the cryptocurrency sector, Sandeep Nailwal, co-founder of Polygon, has reported a significant increase in deepfake scams leveraging his likeness. This Deepfake Peril highlights the urgent need for heightened security measures and awareness within the digital asset community.
Unveiling the Scam’s Modus Operandi
The scam operation came to light when Nailwal disclosed that several individuals had contacted him to confirm conversations purportedly held over Zoom, which he had not participated in. These incidents were traced back to a compromised Telegram account belonging to Shreyansh Singh, the head of Polygon Ventures.
The fraudsters began their scheme by infiltrating Singh’s account and then contacting startup founders linked to Polygon’s investment network. They lured these founders into Zoom meetings using phishing links disguised as official communications.
During these meetings, the organisers showed participants videos featuring AI-generated likenesses of Nailwal, Singh, and an alleged female member of the investment team. These videos contained no audio, and the organisers asked attendees to install a Software Development Kit (SDK), claiming it would enable further engagement. However, Nailwal clarified that the real purpose of this request was to infect the participants’ systems.
The Growing Threat of Deepfake Scams
This incident involving Nailwal is not an isolated occurrence but part of a disturbing rise in deepfake scams targeting prominent figures in the cryptocurrency industry. Similar tactics have been employed against other crypto executives, such as Ripple CEO Brad Garlinghouse, who has repeatedly been impersonated in fraudulent schemes.
Recent statistics have shown that losses attributed to deepfake-related scams exceeded $200 million in the first quarter of 2025 alone, signalling a significant escalation in this form of cybercrime. This Deepfake Peril underscores the increasing utilisation of generative AI technologies by cybercriminals to perpetrate fraud.
Preventative Measures and Best Practices
In response to these threats, Nailwal has issued advice to the crypto community, emphasizing the critical importance of operational hygiene. He advocates for the practice of conducting wallet-signing activities on a dedicated device, thereby isolating these actions from general device usage to minimize risk.
“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,” Nailwal advised.
Conclusion
The increasing prevalence of deepfake scams in the cryptocurrency sector is a stark reminder of the evolving challenges that this industry faces. As cybercriminals continue to harness advanced technologies to conduct their illicit activities, it is imperative for individuals and organizations within the crypto space to adopt stringent security measures and remain vigilant against such threats.
For further insights into the challenges and strategies for securing digital assets, explore our detailed analysis on Web3 scams and threats and stay updated with the latest developments in the crypto world through our Latest Polygon Stories.
