Phemex CEO Says AI Has Been a Net Negative for Crypto

Artificial intelligence has so far created more challenges than benefits for the cryptocurrency sector, according to Phemex CEO Federico Variola. Speaking to Cointelegraph, Variola said AI has redirected investment capital away from crypto and is giving attackers more powerful tools. He also pointed to the growing cost of cybersecurity as a concern for the industry. In his view, rising security expenses could increase pressure on crypto businesses to consolidate or rely on more centralized systems. The comments highlight the competing effects of AI on digital assets: while the technology is attracting funding and improving capabilities for malicious actors, it may also raise the operational burden for companies seeking to protect networks and users. Variola’s assessment comes as the crypto market continues to consider how emerging technologies could affect capital allocation, security and the sector’s underlying decentralization. The remarks were reported by Cointelegraph on September 16, 2026.