ChatGPT Recommends Fake Crypto Site in $2.2M Scam

Artificial intelligence tools can sometimes cause real financial damage. A crypto user known as Alex recently asked ChatGPT for help swapping tokens on the Flare network. The chatbot provided a link to a fraudulent website instead of the official platform. Alex connected his wallet and approved an unlimited spending limit, which allowed scammers to steal 1,904,513 FXRP tokens in seconds.

That stolen amount makes up about 1.3 percent of the entire supply for FXRP, which is a bridged version of XRP used in decentralized finance. On chain investigator Val pointed out that the receiving wallet has been active since April and has gathered multiple tokens from different victims. Security experts estimate the total losses connected to this specific phishing setup have already crossed 2.2 million dollars.

This incident highlights the growing risks of relying on search engines and chatbots for crypto navigation. Scammers frequently buy ads or create lookalike domains to trick automated tools and everyday users. Security teams always advise double checking official app addresses and avoiding unlimited token approvals whenever possible to keep wallet funds safe.