Monero

Government authorities are set to embrace artificial intelligence (AI) in their efforts to track and solve blockchain-based crimes, according to Michael Gronager, CEO of blockchain analytics firm Chainalysis. <a href="https://cointelegraph.com/news/ai-agents-soon-solve-crime-catch-criminals-chainalysis-ceo" rel="noopener noreferrer nofollow">Speaking</a> at the Token2049 conference in Singapore on September 20, Gronager predicted that AI-driven investigations will become the standard tool for law enforcement agencies within the next three to five years.
<h2 id="span-style-font-weight-400-blockchain-tech-to-solve-crimes-span">Blockchain Tech to Solve Crimes</h2>
Gronager highlighted the transparency and scalability of blockchain technology as key factors making it <a href="https://thecoinrise.com/tether-tron-and-trm-labs-launches-anti-crypto-crime-unit/" rel="noopener noreferrer nofollow">ideal for solving crimes globally</a>. He emphasized that AI agents could streamline the investigative process far more effectively than traditional government agents, minimizing overlap between departments and providing deeper insights into illegal activities conducted through cryptocurrencies.
According to Gronager, blockchain will soon be “the only way you would want to solve crime.”
The CEO also pointed out that AI could play a role in tracking crypto tax evaders, especially as tax authorities around the world, including the U.S. Internal Revenue Service (IRS), are already adopting these advanced technologies. However, he acknowledged that individuals who cashed out crypto transactions more than five years ago may evade scrutiny due to outdated tracking methods.
“Many early crypto users likely didn’t pay taxes not out of malice, but because they didn’t know how,” Gronager explained, noting that evolving crypto tax tools and legal expertise mean that such excuses are becoming less viable.
<h2 id="span-style-font-weight-400-challenges-posed-by-privacy-tools-span">Challenges Posed by Privacy Tools</h2>
While AI promises to enhance transparency, Gronager acknowledged the challenges posed by <a href="https://thecoinrise.com/monero-launches-hard-fork-aims-to-boost-security-and-privacy-features/" rel="noopener noreferrer nofollow">crypto privacy tools, such as mixer protocols and privacy-focused tokens like Monero (XMR)</a>. He admitted that these technologies complicate AI’s ability to track criminals. However, he noted that privacy transactions now represent less than 1% of all crypto transactions, indicating a relatively small portion of the overall market.
Despite the challenges of tracking illicit crypto activities, Gronager shared data underscoring the scale of the issue. A report from Chainalysis revealed that since 2019, nearly $100 billion in funds have been transferred from known illicit wallets to cryptocurrency exchanges or other conversion services. 
The post <a href="https://thecoinrise.com/ai-to-revolutionize-blockchain-crime-detection-within-five-years-says-chainalysis-ceo/" rel="noopener noreferrer nofollow">AI to Revolutionize Blockchain Crime Detection within Five Years, Says Chainalysis CEO</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

AI to Revolutionize Blockchain Crime Detection within Five Years, Says Chainalysis CEO

Table of Contents

TheCoinrise Media

Other articles published on Sep 20, 2024

Sonic Blockchain Targets $11T Unsecured Lending Market With Credit Scores for Digital Wallets

Top 6 Reasons to Stay in Bitcoin and Crypto Market

Zeebu X TOKEN2049 Week: Calendar of Exclusive Side Events

Aptos Ecosystem Receives Major Backing with New Fund from Top Venture Firms

The 5 Best Altcoins Set to Explode in 2024 – Including Solana & XRP!

Analysts reiterate ‘buy’ rating as Hut 8 inks $125m deal

Join our free newsletter for daily crypto updates!