AI Development Can Strengthen Security Systems in the Crypto Industry

The development of artificial intelligence (AI) technology is asserted to open opportunities for the crypto and blockchain industry to strengthen security systems more proactively. Indodax CEO William Sutanto stated that attack patterns on the blockchain ecosystem are becoming increasingly complex, necessitating new approaches to security in the face of evolving threats. This complexity was reflected in two hacking incidents in April 2026 affecting Drift Protocol and KelpDAO, resulting in total losses of approximately US$577 million. A TRM Labs report noted that these two incidents accounted for around 76 per cent of the total value of crypto assets stolen up to April 2026. William stated that what has changed is not only the number of attacks occurring, but also their level of complexity, with cyber criminals becoming more organised and utilising various methods that are difficult to detect with conventional approaches. “Therefore, security systems must also be able to adapt more quickly, and AI is one of the technologies with significant potential to support these efforts,” he said. Amidst the rising threats, AI technology is beginning to be utilised as a potential new solution in blockchain security. Unlike traditional audits conducted periodically, AI enables faster smart contract analysis and continuous risk monitoring, allowing potential vulnerabilities to be identified before they develop into larger incidents. William added that AI utilisation has begun to be applied by several technology companies, such as Frosty developed by Coinbase and Mythos from Anthropic. Beyond accelerating internal audits and smart contract analysis, this technology can also perform on-chain analysis, monitor changes in protocol behaviour, and identify unusual transaction activity in real-time, enabling potential threats to be detected earlier. Nonetheless, William emphasised that AI is not a single solution to all security threats in the digital asset and crypto industry. “AI acts as a resource multiplier that accelerates technical detection. However, blockchain security remains an ecosystem with layered protection,” he said.