AI Expected to Transform Blockchain Crime Detection in Five Years

In the next five years, government prosecutors and tax agencies are expected to utilize artificial intelligence to analyze blockchain data for crime detection, according to Chainalysis CEO Michael Gronager.

Speaking at the Token2049 conference in Singapore, he highlighted that AI could enhance the efficiency of investigations by streamlining efforts among various agencies.

Gronager noted that while these AI tools may help identify tax evaders, individuals who conducted standard crypto transactions years ago might escape scrutiny due to a lack of awareness about tax obligations.

He pointed out that as legal guidance and tax software improve, such excuses will become less acceptable. The IRS is already using AI to track potential non-compliance.

READ MORE:

Worldcoin Tests Facial Recognition for Enhanced App Security

He also mentioned that privacy coins like Monero present tracking challenges, though they currently make up less than 1% of crypto transactions.

A Chainalysis report from July indicated that nearly $100 billion has moved from known illicit wallets to exchanges since 2019.

Source

Alexander Stefanov