MEXC User Loses $340,000 After AI Deepfake Bypasses KYC

A MEXC user lost $340,000 after attackers used AI deepfake technology to bypass KYC verification and gain control of the account. Although MEXC intervened to freeze the account and restore access, the security team failed to detect or revoke an API key created by the attacker. Once the 24-hour withdrawal restriction was lifted, the attacker used the API to drain the funds. This incident highlights the growing threat of AI-driven identity fraud, following similar attacks on OKX involving deepfake videos and SIM swapping. Security experts warn that traditional video-based KYC is becoming increasingly vulnerable to sophisticated, industrialized AI tools.