TRM Labs reports that there has been a 40 per cent increase in AI applications in encrypted crime over the past year

According to The Block, TRM Labs reports show that the use of artificial intelligence in encrypted crime has increased by 40 per cent over the past year, largely driven by fraud. Encrypted hackers use artificial intelligence for gap analysis, social engineering attacks and infiltration. In the first half of 2026, 201 incidents of digital asset hacking were recorded, of which approximately 75 per cent resulted from 4 per cent of the damage, while activities in the Democratic People ' s Republic of Korea resulted in approximately $600 million, or 61 per cent of the loss in the first half of the year. Artificial intelligence lowered the threshold of crime and increased the scale of attacks。