Chainalysis CEO: AI to Aid in Crypto Crime Investigations

In the coming five years, government prosecutors and tax authorities are expected to begin employing artificial intelligence to analyze blockchain and solve crimes. This perspective was shared by Michael Gronager, CEO of the analytics firm Chainalysis, as reported by Cointelegraph.

“In a few years, cryptocurrencies will become more or less the only way to solve crimes because they are much more scalable, simpler, more transparent, capable of providing more information, and can be used internationally,” he stated at the Token2049 conference in Singapore.

The expert believes that automating investigations with generative AI instead of relying on numerous government agents will be more efficient. This approach will prevent various departments from “stepping over each other.”

AI agents might even identify cryptocurrency tax evaders. However, those who cashed out digital assets more than five years ago “might escape punishment.”

“[There is] a possibility that you didn’t pay tax not because you didn’t want to, but because you didn’t know how to do it,” Gronager noted.

However, with the emergence of more advanced cryptocurrency tax lawyers and software tools, such an excuse will be insufficient, he believes. The US Internal Revenue Service and other agencies are already using AI to track potential tax evaders.

The CEO of Chainalysis pointed out that AI agents find it more challenging to track transactions through mixers and anonymous coins like Monero. Nevertheless, despite the growth in the “absolute volume” of crypto crimes, confidential operations account for less than 1% of all digital asset transfers.

Earlier in September, Chainalysis noted that Russian crypto laws are aimed at evading sanctions.