AI Development Can Strengthen Security Systems in the Crypto Industry
The advancement of artificial intelligence (AI) technology has been emphasised as a way to open opportunities for the crypto and blockchain industries to strengthen security systems more proactively.
Indodax Chief Executive Officer William Sutanto stated that attack patterns within the blockchain ecosystem are becoming increasingly complex. Consequently, security systems are deemed to require innovation to face constantly evolving threats.
The complexity of these threats was reflected in two hacking incidents in April 2026 involving Drift Protocol and KelpDAO, which resulted in total losses of approximately US$577 million. A report from TRM Labs noted that these two incidents accounted for about 76 per cent of the total value of crypto assets stolen up to April 2026.
William stated that what is currently changing is not just the number of attacks occurring, but also their level of complexity; cybercriminals are becoming more organised and are utilising various methods that are difficult to detect using conventional approaches.
“Therefore, security systems must also be able to adapt more quickly, and AI is one of the technologies that holds great potential to support such efforts,” he said in a statement quoted on Thursday, 2 July 2026.
Amidst these increasing threats, he continued, AI technology is beginning to be utilised as a potential new solution for blockchain security.
Unlike traditional audit processes that are conducted periodically, AI enables the process of smart contract analysis and continuous risk monitoring more rapidly, allowing various potential vulnerabilities to be identified before they escalate into larger incidents.
The use of AI, he added, is already being implemented by several technology companies, such as Coinbase’s developed Frosty and Anthropic’s Mythos.
According to him, in addition to accelerating internal audits and smart contract analysis, this technology is also capable of performing on-chain analysis, monitoring changes in protocol behaviour, and identifying unusual transaction activities in real-time, so that potential threats can be detected earlier.
Nevertheless, William emphasised that AI is not a single solution to all security threats in the digital asset and crypto industries.
“AI acts as a resource multiplier that accelerates technical detection. However, blockchain security remains an ecosystem with multi-layered protection,” he said.