India warns of AI-driven campaign targeting crypto exchanges

India’s Computer Emergency Response Team, CERT-In, has warned that an AI-assisted threat actor it calls CRAFTY FALCON is targeting financial institutions, including cryptocurrency exchanges and virtual digital asset service providers.

In a November 4, 2026 advisory, the agency said the campaign is active and ongoing. CERT-In reported that attackers had stolen wallet keys and siphoned funds from cryptocurrency wallets.

The advisory describes the use of AI-driven offensive-security tools that can generate, refine and adapt attack scripts autonomously at “machine speed.” CERT-In did not publicly name affected exchanges or quantify losses.

CERT-In identifies CRAFTY FALCON

CERT-In designated the threat actor CRAFTY FALCON in an update to an earlier campaign advisory. The agency placed cryptocurrency exchanges and virtual digital asset service providers among the financial-sector targets cited in the warning.

The public notice links the campaign to the theft of wallet keys and the siphoning of funds from cryptocurrency wallets. It does not identify specific platforms or entities affected by the activity.

AI tools cited in the campaign

According to CERT-In, the attackers are using AI-driven offensive-security tools to produce and modify attack scripts autonomously. The agency characterized this capability as operating at machine speed.

That description indicates a threat environment in which attack methods can be adjusted rapidly. It does not, however, establish the scope of the campaign or the value of funds lost, as neither was provided in the public advisory.

• Targets cited by CERT-In include cryptocurrency exchanges and virtual digital asset service providers.
• CERT-In reported wallet-key theft and the siphoning of funds from cryptocurrency wallets.
• The advisory describes the campaign as active and ongoing.

Exchange-security context

The warning adds to the operational security risks faced by exchange users and service providers, where compromised wallet credentials can lead directly to unauthorized transfers. CERT-In’s advisory is a government warning about the reported campaign rather than an attribution of responsibility to any named exchange.

Recent exchange-security coverage has also examined alleged losses involving exchange accounts and policy debate following exchange hacks. Those separate reports should not be read as evidence that the entities involved were connected to CRAFTY FALCON.

Continue reading: alleged losses involving crypto exchange accounts on BTCNews.

Continue reading: policy debate following an exchange hack on BTCNews.

Sources

• CERT-In: Escalation of AI-Driven Attacks on BFSI Entities by Threat Actor "CRAFTY FALCON"
• CERT-In: Escalation of AI-Driven Attacks on BFSI Entities by Threat Actor "CRAFTY FALCON"
• Cointelegraph: India Warns AI Hackers Are Targeting Crypto Exchanges

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