Get ready. In a few short years, your blockchain activity might be under the watchful eye of AI. According to Michael Gronager, CEO of Chainalysis, we’re not far off from governments using artificial intelligence agents to track down crypto crime. Speaking at Token2049 in Singapore, Gronager told Cointelegraph that generative AI could soon be scouring the blockchain, hunting down bad actors faster and more efficiently than ever.
AI on the Hunt for Crypto Crime
Within the next five years, Gronager believes, AI could be governments’ go-to for solving crimes tied to crypto transactions. It’s not just theory anymore. The blockchain’s transparency, combined with AI’s massive processing power, is expected to make it easier for authorities to catch wrongdoers. Why? Because crypto is scalable, international, and, most importantly, public. It’s all about connecting the dots faster and more accurately than human agents ever could.
Instead of different departments stepping over each other, AI will be the solo enforcer. And don’t think this tech will just stop at criminal investigations. AI could even be coming for your taxes. According to Gronager, tax dodgers better watch out—though those who cashed out of crypto years ago might have gotten lucky.
Crypto Tax Evaders Beware, AI is Watching
Sure, if you sold some Bitcoin five years ago and didn’t file taxes, Gronager says you might get off easy. Back then, crypto tax laws were murky, and most people didn’t know how to handle it. But with advanced crypto tax software and experienced crypto lawyers, you don’t have that excuse anymore. Tax authorities like the IRS are already deploying AI to track evaders, and it’s only going to get more advanced.
But what about privacy tokens and mixers like Monero? Gronager admits these tools will make it tougher for AI to trace transactions. Yet, they’re becoming less of a concern. Despite the rise of illicit wallets and sketchy transfers, privacy tokens now account for less than 1% of all crypto transactions. Their growth simply hasn’t kept up with the rest of the crypto space.
AI and the Future of Crypto Policing
Chainalysis’ July report highlights that nearly $100 billion has moved from illicit wallets to exchanges since 2019. But as Gronager puts it, the days of slipping through the cracks are numbered. The future of crypto policing looks like a machine-driven world, where AI tracks transactions, flags suspicious behavior, and helps authorities stay one step ahead of criminals.
If Gronager’s vision comes true, AI agents could soon be crawling every corner of the blockchain, from tax dodgers to cyber criminals, making the space far less anonymous than you might think.