Kraken Tests AI-Proof Identity System — Can Crypto Beat Deepfake Fraud?

Cryptocurrency exchange Kraken has joined a pilot program for Eightco's INFINITY authentication platform to address growing challenges from regulatory compliance and sophisticated AI-enabled fraud, such as deepfakes. Exchanges face increasing scrutiny, exemplified by the EU's Transfer of Funds Regulation, while blockchain analytics show synthetic identity fraud accounted for 28% of fraudulent crypto exchange registrations in 2024. INFINITY aims to serve as a "trust layer" to verify human identity across systems, embedding authentication to bypass traditional document and biometric checks susceptible to deepfake technology. Eightco's backers include BitMine, Pantera, and Kraken itself. However, implementation details, integration costs, and specific success metrics for the pilot remain undisclosed, leaving questions about user experience impact and effectiveness compared to existing solutions like Okta and Onfido.

(Source：BeInCrypto)