Criminals are now using AI daily to clone voices, write flawless phishing emails, and scale scams globally, creating a significant advantage over law enforcement. According to reports from BeInCrypto's Market Intelligence Council panel, crypto scams took an estimated ₹1,400 crore ($17 billion) in 2025, with scam operations using on-chain links to AI vendors extracting ₹26 crore ($3.2 million) each, 4.5 times as much as those without AI integration. As reported by Recoveris executive Sol Cinosi, the old advice to look for poor grammar in phishing emails no longer works, as AI clones voices, generates deepfakes, and automates scams at a scale that wasn't possible a few years ago.
While criminals leverage AI daily, some law enforcement agencies remain restricted from using these same tools. According to Cinosi's testimony during the panel, many agencies are still behind in AI adoption, with some not yet having clear policies and investigators forbidden from using AI tools in certain jurisdictions. As reported by Europol's IOCTA 2026 report, this creates a velocity gap that enforcement now depends on bridging with technology. The barrier often extends beyond formal bans, with many investigators simply fearing the tools, assuming they lack permission to use powers they already have.
Despite the restrictions, AI serves as a force multiplier for investigators when properly utilized. According to Cinosi's analysis, AI helps solve capacity problems by processing enormous amounts of data faster and identifying patterns and connections that would take much more time to find manually. As reported by Recoveris, tracing technology has never been better, with the company now following funds across blockchains, bridges, and even mixers with high confidence. The technology allows investigators to spend more time on critical decision-making, as machines still fail where humans excel in judgment applications.
The gap extends beyond policy to practical implementation on the ground. Nick Pailthorpe of Kodex, who spent 20 years in UK policing, reports that crypto no longer appears only in crypto cases, but in counterterrorism and human trafficking investigations daily. As reported by Pailthorpe, investigators are increasingly encountering wallets and crypto assets at crime scenes without knowing what to do. The industry response includes constant training through webinars and police station visits, while exchanges on Kodex provide educational material to verified officers. Despite the challenges, Pailthorpe remains confident in police agencies worldwide, noting that the tools exist and trainers are working to bridge the gap.
