Angry Polygon Co-Founder Sandeep Nailwal Warns of Deepfake Scam Targeting Crypto Startups
Sandeep Nailwal, co-founder of Polygon, has issued a warning over sophisticated deepfake scams targeting cryptocurrency executives and startup founders using AI-generated videos.
In a statement posted to social media platform X on May 13, Nailwal revealed that scammers have recently impersonated him in a series of fraudulent Zoom calls aimed at deceiving crypto entrepreneurs into installing harmful software.
Polygon, one of the largest Ethereum layer-2 networks, has been at the centre of this attempted scheme.
How the Scam Unfolded
According to Nailwal, the attack originated with the compromise of the Telegram account belonging to Shreyansh Singh, the head of Polygon Ventures.
Using Singh’s credentials, the fraudsters contacted startup founders affiliated with Polygon’s investment community, pretending to reconnect for funding discussions.
Victims were then invited to attend Zoom meetings via phishing links designed to look like official Polygon communication.
These links requested desktop access and opened video calls featuring AI-generated deepfake versions of Nailwal, Singh, and an unidentified woman claiming to be part of the Polygon investment team.
Nailwal explained that while the video featured realistic likenesses, there was no audio. During the call, participants were urged to install a Software Development Kit (SDK), which was actually malware intended to infect their devices.
Deepfake Scams on the Rise in Crypto
This incident highlights a growing industry-wide concern over the misuse of generative AI tools to create convincing deepfakes for fraudulent schemes within the crypto sector.
Ripple CEO Brad Garlinghouse has also faced multiple deepfake scams in recent years, as criminals increasingly turn to AI to impersonate high-profile figures in the digital asset space.
A recent report estimated that losses from deepfake-driven scams surpassed $200 million globally in the first quarter of 2025 alone, underscoring the scale and severity of the threat.
Community Urged to Stay Vigilant
In response to the incident, Nailwal issued a warning to the crypto community, advising users never to install unfamiliar software during unsolicited conversations, particularly via unofficial communication channels.
“These attacks keep getting more and more sophisticated,” Nailwal wrote, adding that the safest practice is to use a separate, dedicated device solely for wallet-signing activities and to avoid performing any other tasks on that system.
As crypto adoption continues to expand and threat actors refine their tactics, experts warn that digital asset users must adopt stricter operational hygiene to protect themselves from increasingly complex scams.
