Crypto Scams Soar as AI Gap Widens Between Police and Thieves

Crypto scams have reached unprecedented levels, with estimated losses of $17 billion in 2025, according to Chainalysis' 2026 Crypto Crime Report. Sol Cinosi, a former Buenos Aires prosecutor and Recoveris executive, warns that AI is the primary driver behind this surge.

Cinosi points out that AI has enabled scammers to clone voices, generate deepfakes, and automate scams at an unprecedented scale. The numbers back him up: scam operations with on-chain links to AI vendors extracted $3.2 million each, 4.5 times as much as those without.

The issue is not just the sophistication of these scams; it's also the fact that law enforcement agencies are struggling to keep pace. Cinosi notes that many investigators are forbidden from using AI tools in certain jurisdictions, creating an uneven playing field.

This 'velocity gap' is a key concern for Europol, which calls it a barrier to effective enforcement. Cinosi argues that the gap is not just about regulation but also capacity building: investigators need training and access to AI tools to stay ahead of scammers.