India warns AI hackers targeting crypto exchanges at ‘machine speed’

AI hackers targeting crypto exchanges — India’s national cybersecurity agency has warned that an AI-assisted hacking campaign is actively targeting cryptocurrency exchanges and other financial firms, stealing wallet keys and draining funds.

The Indian Computer Emergency Response Team (CERT-In) updated an advisory on Wednesday, explicitly naming crypto exchanges among the targets of a threat actor it designates as “CRAFTY FALCON.” The agency said the campaign is “active and ongoing,” with attackers using AI penetration-testing tools to operate at “machine speed” by exploiting victims’ own payment APIs.

According to the advisory, the attackers have exploited vulnerable applications and exposed testing environments, using shared credentials to access production systems. AI tools helped rapidly generate attack scripts, and some incidents involved small test transactions to validate unauthorized transfers before moving larger sums. CERT-In reported stolen cryptocurrency wallet keys and funds drained from wallets but did not name specific affected exchanges or quantify losses.

The agency urged at-risk companies, including crypto exchanges, to heighten security monitoring around the clock, especially during weekends and holidays when attacks have been timed to delay detection. The warning adds to growing evidence of hackers leveraging AI tools against financial institutions.