TRM Labs' Prediction of Significant Rise in AI-Enabled Crypto Crimes in 2026

The analysis is rooted in a CNBC Squawk Box interview [1] featuring Ari Redbord, Global Head of Policy at TRM Labs, discussing 2025 crypto crime trends and forecasting a sharp rise in AI-induced crypto crimes in 2026. Supporting data from TRM Labs’ internal analysis [0] reveals that GenAI-enabled scams increased by 456% between May 2024 and April 2025 compared to the prior year. Additional context from AInvest [2] shows Redbord has previously emphasized that criminals are early AI adopters, using the technology to eliminate human bottlenecks, automate phishing attacks, and execute prompt injection attacks. Traditional compliance tools are ill-equipped to counter these advanced tactics, whereas TRM Labs employs AI-driven blockchain analytics to defend against such threats.

1. AI adoption by crypto criminals is accelerating rapidly, with AI-as-a-service models democratizing access to sophisticated attack tools.
2. The 456% surge in AI-enabled scams (May 2024-April 2025) [0] is a strong indicator of a growing trend expected to intensify in 2026 [1].
3. A critical gap exists between AI-powered attacks and traditional defense mechanisms, creating opportunities for firms like TRM Labs that use AI for blockchain security [2].

Risks:

• Increased regulatory scrutiny on both the crypto and AI sectors as authorities respond to rising crime rates [1].
• Higher potential for financial losses among crypto users due to more sophisticated AI-driven scams [0].

Opportunities:

• Growing demand for advanced blockchain security and analytics solutions, such as those offered by TRM Labs [2].
• Incentives for the development of more robust compliance tools to counter AI-induced crimes.

TRM Labs is a leading blockchain intelligence platform with Ari Redbord as its Global Head of Policy. The analysis identifies a significant 456% increase in AI-enabled crypto scams (May 2024-April 2025) [0], with a forecasted further rise in 2026 [1]. Criminals are leveraging AI to scale attacks, while traditional defense tools remain insufficient, highlighting the importance of AI-powered security solutions in the crypto space [2].