India's cybersecurity agency warns that AI-assisted attacks are affecting crypto exchanges.

India’s CERT-In warned that an AI-assisted campaign dubbed CRAFTY FALCON is escalating against cryptocurrency exchanges and virtual digital asset service providers, with attackers stealing wallet keys and moving funds. The agency said intruders enter through internet-exposed testing environments, then pivot to production systems via shared credentials and other paths, using AI security tools to generate and refine attack scripts. Some strikes are timed for weekends or holidays to delay detection and response. CERT-In advised affected institutions to strengthen round-the-clock monitoring. The warning matters because exchange wallet-key theft can translate directly into customer losses, and the next thing to watch is whether exchanges tighten test-environment exposure and shared-credential controls while extending 24/7 monitoring.