AI to Help DeFi Platforms Combat Cybercrime in 2025, Experts Say

AI to Help DeFi Platforms Combat Cybercrime in 2025, Experts Say

Proponents of decentralized finance (DeFi) believe that the development of artificial intelligence (AI)-powered tools could enhance security and counter cybercriminals.

The Rise of AI in DeFi Security

According to Peckshield’s Annual Crypto Security Report, digital assets worth $3.01 billion were stolen in 2024. Losses were split nearly evenly between centralized finance (CeFi) and decentralized finance (DeFi), marking a notable shift. In 2022, DeFi platforms accounted for 80% of the $3.6 billion lost, and in 2023, they represented 70% of the $2.6 billion total.

While CeFi-related losses surged due to large-scale heists such as the $305 million DMM Crypto hack, DeFi’s share of losses has significantly decreased. Critics argue that DeFi platforms still face substantial cybercrime threats, but proponents see a potential game-changer in AI-powered tools.

Experts’ Perspectives on AI in DeFi

Lingling Jiang, a partner at DWF Labs, predicts that 2025 will herald a new category called decentralized finance powered by AI (DEFAI). She explains:

“AI and machine learning are becoming game-changers for identifying threats. Imagine having smart systems that can spot suspicious activity in smart contracts before anything goes wrong.”

Jiang emphasizes that the next generation of DeFi protocols will integrate security into every transaction rather than merely patch vulnerabilities.

Luke Xie, co-founder and CEO of Satlayer, agrees, highlighting AI’s potential to provide early warnings of potential attacks. He notes:

“AI security solutions will empower users to avoid honeypots and blatant rug pulls by detecting and alerting users to these scams early.”

Global Regulatory Collaboration on the Horizon

While AI solutions are unlikely to make the DeFi space entirely risk-free, they offer users tools to detect and avoid obvious scams. Continued reports of massive losses in DeFi are also expected to prompt regulatory changes.

Gianluca Sacco, COO of crypto exchange VALR, anticipates greater global coordination among regulators, though this might clash with DeFi’s inherent privacy benefits. Sacco remarked:

“The decentralized nature of this industry allows developers to create protocols anonymously, making broad KYC implementation challenging.”

In addition to regulatory collaboration, Sacco predicts intense scrutiny of stablecoins, particularly regarding the assets backing them.

Hong Yea, co-founder and CEO of GRVT, expects regulators such as the Abu Dhabi Global Market (ADGM), the Virtual Assets Regulatory Authority (VARA), and the Bermuda Monetary Authority to intensify cross-jurisdiction cooperation. He also foresees increased collaboration between traditional finance (TradFi) and DeFi.

A Dual-Pronged Approach for 2025

The convergence of AI and DeFi is poised to redefine cybersecurity in the crypto sector. While AI tools will bolster defenses against cybercrime, regulatory collaboration will aim to create a more secure and transparent DeFi ecosystem. As 2025 progresses, these developments could pave the way for a safer and more innovative decentralized financial landscape.