Scammers Use AI-Generated Videos to Lure Users into Deploying Malicious Contracts, Over $1 Million Stolen

ChainCatcher reports, according to Coindesk, that scammers have used AI-generated YouTube videos to promote malicious smart contracts disguised as MEV trading bots, stealing over $1 million in cryptocurrency, according to a report by security firm SentinelLABS.

In the most successful case, the address 0x8725 ...6831 stole 244.9 ETH (approximately $902,000) through an associated video with 387,000 views. The scam tactics include using AI-generated avatars and voices, manipulating the comment section, and employing XOR obfuscation in the contract code to hide the attacker’s wallet. SentinelLABS warns users not to deploy “free bots” promoted on social media and stresses the importance of reviewing smart contract code, even on testnets.