Dutch Blockchain Week (DBW) 2025 is proving to be a remarkable installation. The hype around the potential melding of AI and blockchain is as palpable as it gets. Transaction times would decrease, contracts would be more intelligent, security would improve – the list goes on. Are we all, as an industry, actually ready to face the repercussions of this technological wedding gone awry? I think not.

AI's Shadow Looms Over Crypto

Though excited by AI’s tremendous potential to enhance security, what we fail to consider is how it’s being used like a weapon against us. Think about it. We’re not just discussing arming our good guys with cooler tech than our bad guys. The Dutch Blockchain Summit is the perfect time to address these issues.

AI-enhanced phishing attacks are no longer hypothetical, but picture them turbocharged. Because deepfakes are getting more and more advanced, and in the near future will be undetectable from the real deal. An AI-generated “CEO” of a big crypto exchange declares a nonexistent partnership. This is the announcement that sets off a giant pump and dump, sending the market into total pandemonium. The collateral damage would be incalculably bad, and maddeningly difficult to ID.

It isn’t simply a matter of people being defrauded. It’s no secret that nation-states are aggressively developing new techniques to use crypto to avoid sanctions and finance nefarious acts. AI can exponentially increase their capabilities. Imagine AI algorithms programmed to immediately launder any amount of money through complex decentralized finance (DeFi) protocols. In addition, they are able to evade conventional AML systems and plan for regulatory enforcement actions. That’s the national security threat we ought to be debating.

Hackathons Aren't Enough, Wake Up!

The Block & Order Hackathon at DBW25 is an exciting new addition! It seeks to address AI-fueled compliance and fraud prevention, taking notable steps in the right direction. That’s a classic example of putting a band-aid on a gaping wound. What’s required is a deep change in our mindset. It’s time to go beyond the band-aids and think proactively about the risks we could face.

We're celebrating innovation, and that's great. But innovation without foresight is reckless. Take the first stage of the internet as an example. We were blinded by our ambition to connect the entire world that we failed to consider that with that connection would come the new risks of cybercrime and misinformation. We’re now repeating this mistake with AI and blockchain. It’s one thing to lose a few thousand dollars, it’s another thing entirely to lose faith in the entire ecosystem.

Innovation Demands Serious Risk Management

So, what can we do? For one, we need to invest in AI-powered security solutions that can proactively detect and respond to AI-driven attacks. This is an arms race and we have to be on the bleeding edge. We need to figure out how to build smart, strong regulatory frameworks. All of these frameworks should address the specific challenges that AI poses in the crypto landscape. These frameworks need to be flexible enough to adapt to rapidly evolving technology, but strong enough to deter malicious actors.

The third lesson, and maybe the most important, is we need to encourage international collaboration. AI is a global technology, and the threats that this technology poses do not stop at national borders. Together with our partners, let’s flood the zone with information. By working with one another, we can better align regulatory approaches and develop unified benchmarks that promote AI security. Our speakers at the Dutch Blockchain Summit will have to face up to these challenges during our breakout sessions and panel discussions. We’ve heard a lot of high-level discussions about innovation, now we’re looking for specifics on how they will mitigate that risk.

Now is the time to wake up and address this hidden, but serious AI threat to crypto security. The future of blockchain depends on it.