REPORT | AI is 2x More Effective at Exploitation Than Detection in Crypto, Says Binance Research

Binance Research, the market research arm of the world’s largest cryptocurrency exchange, Binance, has recently published a new weekly market commentary titled “AI-Powered Crypto Security.” The report examines how artificial intelligence is making financial crimes easier to execute. At the same time, it is driving new investment in fraud detection, risk management, and user protection across both crypto and traditional finance.

The commentary notes that DeFi hacks have steadily declined over the longer term, falling from $3.6B in 2020 to $1B in 2025, while no major CEX-targeted exploits have succeeded so far in 2026. At the same time, the report points out that the threat is evolving rather than disappearing as the monthly DeFi hacks surge to $621M in April 2026, the highest level seen since March 2022.

Binance Research also finds that AI is currently 2x better at exploitation than detection, underscoring the growing asymmetry between attackers and defenders. According to the report, AI-powered exploits now cost around US$1.22 per contract and are projected to fall another 22% every two months, further shifting the economics in favour of attackers and lowering the barriers to scalable exploitation.

The report further highlights the growing effectiveness of AI-enabled scams, which now extract 4.5x more money per scam and generate 9x more transaction activity than traditional methods. Impersonation tactics rose 1,400% year-on-year in 2025, while crypto accounted for 88% of all detected deepfake fraud cases globally, reflecting the sector’s outsized exposure to AI-driven fraud and identity-based attacks.

In response, financial institutions are accelerating their use of AI for crime detection. Binance Research notes that 75% of financial institutions plan to increase AI use for financial crime detection, as firms across the industry invest more heavily in automated monitoring, fraud prevention, and risk management. The commentary also highlighted how Binance’s enhanced detection systems helped cumulatively protect users from US$10.53 billion in potential losses from 2025 through Q1 2026, illustrating the scale of impact that AI-driven defences can deliver.

In the commentary, Binance Research concludes: “The scale of AI-enabled crime is unprecedented, but so is the response — global financial services are committing record AI investment, crypto exchanges are matching TradFi rigor, and public-private partnerships are demonstrating that even pseudonymous on-chain crime can be traced, frozen, and recovered.”

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