Illicit Crypto Flows Reached $158B in 2025, AI-Powered Fraud Grew 500% Annually

Illicit cryptocurrency flows reached $158 billion in 2025, with AI-powered fraud activities expanding at an annual rate of about 500%, TRM Labs reported. Autonomous AI agents now automate fund splitting, optimize cross-chain bridging routes, and execute trades on decentralized platforms, allowing transaction trails to be obscured within seconds. The firm noted that 150 hacking incidents in 2025 caused $2.87 billion in losses, with rapid fund dispersal contributing to a $1.46 billion theft involving a major exchange.