Phemex CEO Says AI Is a Net Negative for Crypto

Artificial intelligence and cryptocurrency increasingly compete for technology capital and talent, while AI tools are reshaping the balance between attackers and defenders in digital assets. Phemex Chief Executive Federico Variola argues that AI can draw liquidity away from crypto while making it cheaper for malicious actors to identify vulnerabilities or mount social-engineering attacks. Smaller protocol teams may struggle to fund the resulting security burden, potentially weakening self-custody and decentralized finance and pushing activity toward larger, centralized platforms.

In comments on Cointelegraph’s Chain Reaction published on Sept. 16, 2026, Variola called AI a “net negative” for crypto so far, even though Phemex announced an AI-focused transformation in February. He said AI agents could still help investors construct portfolios and improve trading decisions but should not replace users’ final judgment. The warning follows a July theft in which attackers drained about $116 million in Bitcoin from more than 5,200 addresses affected by a Coldcard hardware-wallet flaw widely believed to have been discovered through malicious use of AI.