Federico Variola, the CEO of the cryptocurrency exchange Phemex, expressed in a Cointelegraph podcast that the rise of artificial intelligence has caused more harm than good for the digital asset sector.
🎙️ @Phemex_Official CEO @Federico0x stated that human involvement in crypto trading will never be fully replaced by AI.
— Cointelegraph (@Cointelegraph) September 15, 2026
“Ultimately, it will be up to the user to make the final decision. I don’t believe agents will ever fully replace the act of executing a trade; that’s always… pic.twitter.com/N6pDMJaysS
He noted that neural networks are diverting capital away from the crypto space, while simultaneously aiding hackers in discovering vulnerabilities in code. This situation is forcing even smaller crypto projects to inflate their cybersecurity budgets, ultimately pushing the market towards greater centralization.
“It’s tough to separate optimism about AI in our field. Liquidity has significantly shifted there. On the other hand, neural networks have provided new tools for malicious actors,” Variola remarked.
Threats to DeFi and Crypto Wallets
Variola's concerns are echoed by recent incidents. In July, hackers exploited a vulnerability in the Coldcard hardware wallet, stealing bitcoins worth $116 million, affecting over 5,200 addresses. Experts believe that the critical flaw in the code was identified using artificial intelligence.
At that time, Coinkite CEO Rodolfo Novak cautioned developers about this new reality, stating that AI tools can identify bugs faster than even the most experienced professionals.
— nvk (@nvk) July 31, 2026
Variola further mentioned that technological advancements are making DeFi and non-custodial storage less appealing to everyday users.
“AI is infiltrating everywhere. New social engineering strategies are emerging, and the risks of device hacking are increasing. Regular DeFi users now have to worry about many issues they previously didn't even consider,” he emphasized.
Contradictions and Benefits of AI Agents
Variola’s viewpoint appears skeptical, especially considering Phemex's own plans. Earlier this year, the exchange announced its intentions to implement AI on a large scale. The company aims to utilize the technology for product development and internal operations. Variola clarified that he is currently discussing the negative implications of artificial intelligence on the market as a whole, not specifically on Phemex's business.
He acknowledged, however, that the technology does offer practical benefits. AI agents can assist investors in diversifying their portfolios and provide trading advice. Yet, he maintained that neural networks will never completely replace human judgment, and the final trade decision will always rest with the user.
It’s worth noting that a report by F6 covering 2025 and the first half of 2026 indicated that AI-based tools have been integrated into real cyberattacks, ranging from initial reconnaissance to the generation of malicious code.