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Trump Deepfake Scams Spread After Verdict, Coinbase Warns

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Amid growing concerns about digital security, Coinbase has warned about the increasing prevalence of deepfake scams in the cryptocurrency industry.

This alert arises in the back drop of the increased use of fake AI images and videos in circulating fake news and information on the social media platforms especially after the recent conviction of the former President of United States, Donald Trump.

Trump Deepfakes Spread Post-Conviction

In the wake of the verdict in the case where Donald Trump was convicted of the crime of falsification of business records, followers of the former president unleashed a wave of AI-generated images where Trump was depicted as a victim of a conspiracy.

Several recognizable profiles on X, previously, known as Twitter, promoted these deepfakes right after the New York jury reached its verdict. This strategy highlights one that has been widely applied, especially in the use of deepfakes with the aim of influencing perception and disseminating fake news.

This was confirmed by Coinbase’s Chief Information Security Officer (CISO), Jeff Lunglhofer, who noted increasing complexity and frequency of deepfakes. He noted that the platforms like YouTube are the most affected by the scams because the content posted does not look like a violation of the rules of users’ conduct and does not set off alarm security system, which can identify the generally recognized violations such as nudity or terrorism.

Deepfake Scams Target Crypto Executives

Lunglhofer expressed his concerns at the Consensus conference while stressing that the new development in AI technology, deepfake, is certain to harm the crypto industry. This has been underscored by videos mimicking the real life images of crypto CEOs such as Coinbase’s Brian Armstrong or Ripple’s Brad Garlinghouse that have been used in advertising fake token giveaways.

These deepfakes can look very realistic and therefore, it becomes hard to differentiate between illegitimate and genuine content.

Current deepfake technology is becoming more sophisticated and this means that more and convincing scams can be expected and may be difficult to detect. Lunglhofer pointed out that alertness alone is insufficient to deal with these dangers, and suggested implementing further safeguards for the security of the assets and transactions.

Enhancing Security in Crypto Transactions

Since the crypto industry involves significant risks in its transactions and services, Lunglhofer calls for stricter security measures. He advises on employing facilities like the vault and multi-sig signing protocol that brings in a cooling off period before one can transact large value money.

This extra layer of protection could assist to reduce erratic behaviour that results in significant losses of funds.

In small and routine purchases, Lunglhofer affirms the use of passkeys where they produce a security token for a given user device which cannot be copied or switched. This method is more secure than the simple SMS based authentication which he says is so simple to hack into and was never designed to provide security in the first place.

Read Also: Mt Gox $10B Bitcoin Distribution Won’t Affect BTC Price: Details

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.

US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges

The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.

Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.

Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.

This Is A Developing News, Please Check Back For More

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

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Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.

Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin

In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.

Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.

Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.

“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.

In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.

Industry Players Are Bracing For New Stablecoin Regulations

Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.

For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.

Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.

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FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

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The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.

New FDIC Guidelines on Crypto-Related Activities

The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.

Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.

This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.

This Is A Developing News, Please Check Back For More

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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