Artificial intelligence is driving down the cost and difficulty of cyberattacks on crypto platforms, with hacks and exploits causing $1.4 billion in crypto losses over the past year, and AI will likely make it worse. AI-generated code and increasingly sophisticated malware demand a shift toward formal verification, hardware-based security and offline storage. The economics of cybersecurity are breaking down as AI tools make it faster and cheaper to attack systems, with developers unable to simply 'make it secure' - leading to production of much code that will be insecure by design.