Femex CEO: AI Has Been a Net Negative for Crypto Industry

Femex CEO Federico Barriola has described artificial intelligence as a net negative for the cryptocurrency industry overall. According to a report from blockchain media CoinTelegraph on July 16 (local time), he stated that AI has been siphoning funds from the sector, boosting attackers' capabilities, and driving up cybersecurity costs for small teams, thereby increasing centralization pressures in the crypto industry.

Speaking on CoinTelegraph's 'Chain Reaction,' Barriola said it is difficult to view AI optimistically within cryptocurrency. He explained that liquidity has significantly shifted toward AI industries, while AI is being used for social engineering attacks and vulnerability scanning, making malicious actors more formidable. This shift makes it harder for small teams developing protocols to operate without substantial cybersecurity budgets.

Barriola also warned that AI threats could diminish the appeal of self-custody and DeFi, as increased risks from device hacking and social engineering attacks would place greater burdens on individual users. His comments come after Femex announced an AI transition plan in February, though this statement focuses more on industry-wide assessment than the company's strategy.

Recent security incidents align with these concerns. In July, over $116 million in Bitcoin was drained from more than 5,200 addresses affected by a cold wallet hardware flaw, which some widely suggested could have been identified through malicious AI use. CoinKite CEO Rodolfo Nobak had previously cautioned that AI-assisted code review could detect bugs faster than industry experts.

However, defensive applications of AI were also noted. Slick's lead blockchain investigator Natalie Newson stated in April that while AI can make attacks more sophisticated, it may also become one of the most powerful defense tools available.