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Chainalysis CEO Michael Gronager predicts authorities could soon rely on AI to scan blockchains, solve crimes, and uncover crypto tax evasion.
Gronager, speaking at the Token2049 conference on September 20, explained that blockchain’s transparent and scalable nature makes it an ideal tool for catching criminals. He believes AI will enhance this capability, making it easier for governments to track illegal activity across borders. This shift could improve regulatory efforts, making blockchain technology more accountable to governments worldwide.
AI-DRIVEN CRIME SOLVING IN CRYPTO: A REALITY SOON?
Chainalysis CEO Michael Gronager predicts that within five years, AI agents will be scanning blockchain transactions to aid government authorities in solving crimes and tracking tax evaders.
Speaking at the Token2049… pic.twitter.com/AgKd7NNWGZ
— Crypto Town Hall (@Crypto_TownHall) September 20, 2024
At Token2049, a major event where crypto industry experts discuss innovations and trends, Gronager highlighted that using AI to automate blockchain investigations would be much more efficient than relying on large teams of investigators. This would then enable government agencies to avoid confusion and overlap between departments.
He stated that it won’t be long before tax authorities and prosecutors use AI to scan blockchain data and catch criminals. Gronager estimated that governments will be able to use AI to scan blockchain transactions, uncover crimes, and identify tax evaders in the next three to five years.
His insights come amid the growing increase in crypto-related fraud and illicit activities.
Chainalysis’ “Money Laundering and Cryptocurrency Report,” released on July 11, revealed alarming trends in crypto-related crime. Since 2019, nearly $100 billion has been funneled from known illicit wallets to crypto exchanges or alternative conversion services.
The report also revealed that criminals increasingly use cryptocurrency to hide the origins and movements of these illicit funds obtained from on-chain crimes like darknet markets and ransomware operations. This also includes proceeds from off-chain criminal activities like fraud and drug trafficking.
In light of Chainalysis findings, Gronager’s remarks have greater significance. His prediction of AI-powered systems being able to scan the blockchain for the detection of crime points to a future where law enforcement can be equipped with better tools to fight bad crypto actors effectively.
