Crypto Industry Hit by AI-Driven Human Manipulation

The crypto industry is facing a new and significant threat in 2026, but it's not hackers or smart contract exploits. It's human manipulation through AI-powered social engineering.

Solana Foundation's CISO Michael Coates warned that attackers are shifting their targets from protocols to people, using advanced AI tools to create convincing fake emergency messages, compromised colleague requests, and too-good-to-be-true investment opportunities.

The industry has spent billions on technical security measures, but these won't protect against social engineering attacks. The problem is that human vigilance is insufficient, and even the most technically sophisticated users can fall victim to carefully engineered manipulation.

Coates noted that AI-powered social engineering doesn't require obvious mistakes; it only needs small lapses in judgment at carefully engineered moments.