The Financial Industry Regulatory Authority (FINRA) has sounded the alarm about a significant increase in AI-driven cryptocurrency scams, raising concerns for retail investors and market integrity. Their 2025 report reveals a shocking $5.7 billion rise in fraud linked to artificial intelligence, signaling a heightened threat this year. This surge poses challenges for both markets and regulators worldwide as adversarial use of generative AI threatens investor security and stability. FINRA President Robert Cook underscores the emergence of sophisticated scams utilizing deepfakes and phishing tactics amplified by AI technologies. The report reveals that these AI-powered schemes are mirroring past manipulation tactics like pump-and-dump operations, demanding proactive measures to counter this evolving threat.