Michael Coates, chief information security officer (CISO) at the Solana Foundation, stated that advancements in artificial intelligence are making cryptocurrency scams increasingly difficult for users to detect. Coates explained that these risks primarily stem from social engineering rather than weaknesses in blockchain coding or Solana’s smart contracts.
Experienced security leader at the helm
Coates joined the Solana Foundation earlier this year after serving as CISO at Twitter and leading security initiatives at Mozilla, a technology company known for the Firefox browser. As CISO, Coates is responsible not only for safeguarding the foundation but also for assisting projects within the broader Solana ecosystem and working with regulators to shape cybersecurity standards.
The Solana Foundation focuses on supporting the Solana blockchain, an open-source network designed for fast, scalable decentralized applications and cryptocurrencies.
Mini dictionary: Solana Foundation, a non-profit organization promoting education and adoption of the Solana blockchain by supporting community projects and maintaining network security.
AI-driven scams on the rise
Coates reported that, in recent crypto incidents, attackers used social engineering techniques such as phishing, impersonation, and deepfake voice calls to access sensitive credentials. Rather than exploiting smart contract vulnerabilities, many hacks originated from compromised operational security or Web2 systems.
“In many cases, it is an operational security issue or a Web2 issue that led to a key compromise,” said Coates.
He warned that the proliferation of AI-powered tools now allows scammers to create highly realistic phishing messages, fake identities, and imitated voices that can deceive even experienced users. According to Coates, such scams will become more prevalent and sophisticated as deepfake technology improves.
This threat is especially serious in crypto, where transactions are irreversible. If a user unwittingly signs a malicious transaction or shares a recovery phrase, their funds usually cannot be retrieved.
Pushing for built-in security and industry readiness
Coates identified the need for layered security, as he does not believe scams can ever be completely prevented. He emphasized that even vigilant individuals and teams may eventually fall for increasingly realistic cons generated by AI.
“You cannot fully prevent anyone from falling victim. Eventually, you will be fooled because the cons are that good,” stated Coates.
He recommended that both organizations and individuals use systems that default to secure settings, rather than relying on users to identify every potential threat. Coates cautioned that anyone working in crypto could become a target, as attackers may combine fake vendor messages or deepfaked audio to trick staff into authorizing unauthorized transactions.
Furthermore, Coates highlighted quantum computing as a longer-term vulnerability for crypto networks. He explained that the timeline for practical quantum attacks remains uncertain, but early adoption of post-quantum cryptographic algorithms is critical for network readiness.
He noted that the Solana Foundation has already published a strategy to prepare for this technological shift, urging the industry to focus on systems that automatically protect users without expecting perfect judgment each time.
