Ethical Fault Lines in the AI-Cryptocurrency Crime Nexus: A Systematic Review of Criminal Typologies, Governance Deficits, and the Imperative for Responsible AI Frameworks

The systematic review of 52 studies have connected to the growing criminal use of AI and cryptocurrencies, using ethical principles of AI and situational crime prevention to consider smart contract exploitation, AI-influenced money laundering, synthetic identity fraud, and ransomware manipulation. Existing technological determinist assumptions are questioned, and a “sophistication paradox” could be observed from the events of DMM and WazirX Bitcoin hacks. Criminal networks tend to be either highly sophisticated or operating on large scales. The paper outlines a three-part gap model, which includes a regulatory lag, a governance gap on policies , and an ethics gap, which on thelack of accountable systems. The application of AI for defensive countermeasures, such as blockchain forensics, is identified as posing risks of mass surveillance, algorithmic discrimination, and financial exclusion. The research highlights that technical and regulatory enforcement will not be enough withoutestablishing ethical AI governance as a “foundational layer” and providing a multi-dimensional taxonomy of crimes, as well as a multi-stakeholder governance framework for both developers and regulators.