Elliptic CEO: AI trading surge creating a crypto security arms race

The expansion of AI agent-based financial trading is pushing existing crypto compliance systems to their limits, according to blockchain analytics firm Elliptic. In an interview with CoinDesk, Elliptic CEO Simone Maini said that agent-based commerce will cause an exponential increase in transactions requiring monitoring, a volume that current compliance staff cannot handle. To address this, Elliptic plans to build an "AI agent-type" compliance system to automate transaction monitoring and investigation. The company raised $120 million in a new funding round on May 12, backed by Deutsche Bank and Nasdaq's venture arm. CoinDesk noted that as AI technology also fuels an increase in hacker attacks, the crypto security landscape is turning into an arms race.