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Artificial intelligence is enabling a significant increase in hacking activities involving blockchains, with incidents rising 440% from two per day before mid-2025 to eleven cases daily. According to a report by Chainalysis published on September 17, hackers are using AI to hide malicious code within blockchain transactions and smart contracts, making attacks harder to detect and stop due to the immutable nature of blockchains. State-backed groups, especially those linked to North Korea and Iran, now dominate this type of cyber activity, leveraging blockchains for their operations where conventional methods might face restrictions or obstacles.
Written locally by qwen2.5:14b on 2026-09-18,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Open-source artificial intelligence is enabling hackers to more easily hide malicious code within blockchains, leading to a significant rise in cyber threats. According to a report published by Chainalysis on September 17, instances of malware instructions embedded in on-chain transactions and smart contracts have surged by 440% over the past year, with an average of 11 cases per day. Prior to the release of powerful Chinese open-source AI models in mid-2025, such incidents occurred at a rate of just two per day. Hackers are now using blockchains as "dead drops" to leave instructions for malware, making these attacks harder to detect and neutralize due to the immutable nature of blockchain records.
Written for “AI Enabled Cyber Attacks Increase” on 2026-09-18,
grounded in this article and the 0 other(s) covering the same event.
Why this leaning score
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No political leaning scored for article 17773 · logged 2026-09-18
AI fuels 440% surge in hackers using blockchains in attacks
AI generated
SAN FRANCISCO – Open-source artificial intelligence is making it easier for hackers to hide malicious code on blockchains, opening a new front in a crypto industry already grappling with rising cybercrime.
Instances of malware instructions written into on-chain transactions and smart contracts are up 440 per cent in less than a year, averaging 11 cases per day, blockchain analytics firm Chainalysis said in a report published on Sept 17.
asserted
Chainalysis → fuel → Sept
Such cases averaged two per day prior to the release in the middle of 2025 of powerful Chinese open-source AI models with no restrictions on generating malicious code, according to the report.
uncertain
cases → average → report
A malware attack uses malicious software planted on a computer or network to steal information, passwords or funds.
asserted
attack → use → information
In the attacks documented by the report, hackers use a blockchain to leave instructions for that software, such as the location of the server that controls it, a technique known as a “blockchain dead drop.”
asserted
that → document → drop
This can make an attack harder to stop because information recorded on a blockchain cannot be easily removed.
“When malware uses a blockchain to relay key information – for example, where to find its latest active command-and-control server – its attempts to reconnect with the attacker become much harder to block effectively,” said Vitaly Kamluk, founder of cybersecurity consultancy TitanHex.
asserted
Kamluk → make → TitanHex
State-backed groups – including those linked to North Korea and Iran – now account for the majority of this activity, the report said.
asserted
report → back → activity
Blockchains can appeal to state-linked groups in countries where renting servers or paying for hosting can trigger security checks or run into payment obstacles, according to Kamluk.
uncertain
renting → appeal → Kamluk
The findings add to evidence of generative AI contributing to a boom in cyber threats by spotting more software vulnerabilities and allowing cybercriminals to carry out more attacks.
asserted
cybercriminals → add → attacks
In crypto, the number of hacks rose roughly 150 per cent to 207 in the first half of the year, according to blockchain intelligence firm TRM Labs.
uncertain
number → rise → Labs
Blockchains are typically not involved in the initial infection of a machine, which often happens through conventional means such as supply-chain attacks or malicious downloads, Eric Jardine, head of research at Chainalysis, said in response to questions over email.
asserted
Jardine → involve → email
The firm cannot determine from blockchain data how many attacks succeeded or how much money was lost, he added.
asserted
he → determine → data
Hiding malware on a blockchain is not new, Chainalysis said, but powerful new open-source AI models are allowing hackers to carry out attacks on a larger scale, while growing involvement by state actors is making them more sophisticated.
asserted
them → hide → actors
Worsening the threat, open-source AI models can be run independently, allowing hackers to modify them or remove safeguards against cybercrime.
“This gives malicious developers greater control over the model and more privacy, because they do not have to submit their source code to large cloud providers that may monitor their platforms for abuse,” Kamluk said.
uncertain
Kamluk → worsen → abuse
By contrast, companies such as OpenAI and Alphabet Inc’s Google can block access to their AI services when they detect abuse.
asserted
they → block → abuse
The transparency of blockchains cuts both ways, though.
asserted
transparency → cut → ways
Every update attackers post is permanently recorded, letting investigators map their infrastructure and connect campaigns that would otherwise look unrelated, according to Chainalysis.
uncertain
that → post → Chainalysis