Elliptic CEO: Cryptocurrency security is evolving into an AI arms race, and compliance teams struggle to keep up with machine-speed transaction volumes.

Deep Tide TechFlow News. On May 18, CoinDesk reported that Elliptic CEO Simone Maini said the biggest emerging risk facing crypto security is not larger-scale hacking attacks, but AI-driven financial activity operating at a pace and scale that human compliance teams cannot keep up with. As AI lowers the thresholds for hacking, scams, and fraud, security companies such as Elliptic are also responding by using AI agents to analyze on-chain data in real time. The two sides are moving toward an automated arms race. Maini noted that today’s compliance systems still rely heavily on manual reviews, and the number of compliance analysts worldwide focused on digital assets is simply not enough to meet future demand. Elliptic has completed a $120 million funding round, with investors including Nasdaq and Deutsche Bank, to build an “agent compliance system” that uses AI to automate trading monitoring and investigation workflows, thereby reducing the cost of each individual alert and investigation.