Kraken Tests Eightco’s INFINITY Platform to Strengthen Compliance and Combat AI-Driven Fraud

Crypto exchange Kraken has joined Eightco’s INFINITY authentication pilot program, aiming to enhance regulatory compliance and address the rising threat of AI-enabled identity fraud. While the exchange has not disclosed the pilot’s duration or evaluation criteria, the move underscores growing industry pressure to strengthen verification systems amid heightened global scrutiny.

Kraken currently holds 12 regulatory licenses and registrations, including FinCEN in the U.S. and FINTRAC in Canada. All users undergo Know Your Customer (KYC) verification to comply with anti-money laundering (AML)rules. The initiative aligns with new regulations such as the EU’s Transfer of Funds Regulation, which enforces the crypto Travel Rule requiring sender and receiver details for transactions.

The timing reflects an urgent need for enhanced identity protection as synthetic fraud—often powered by AI-generated profiles and deepfakes—rose sharply in 2024. Reports show 28% of fraudulent crypto registrations and 60% of scam wallet deposits involved AI tools, exposing weaknesses in conventional KYC processes.

Eightco’s INFINITY platform introduces a new “trust layer” that embeds identity verification directly into applications instead of relying on standalone checks. While Eightco has not revealed the technical details behind its AI-resistant features, the company targets sectors managing over $35 trillion in financial assets and $500 billion in crypto treasuries.

Backed by investors like BitMine, Pantera, GSR, Coinfund, Wedbush, and Kraken, Eightco also holds a Worldcoin ($WLD) treasury. The company plans to expand INFINITY’s reach beyond finance into gaming, e-commerce, energy, and healthcare.

As authentication technology evolves, success for Kraken’s pilot will depend on user experience, fraud prevention effectiveness, and integration efficiency. With AI-driven fraud rapidly advancing, Kraken’s experiment with INFINITY could shape the next generation of crypto compliance and digital identity security.