AI-Powered Elliptic Targets Bitcoin (BTC) Money Laundering: A Revolutionary Approach in Crypto Security

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Blockchain analytics firm Elliptic collaborates with MIT-IBM Watson AI Lab to use artificial intelligence in detecting Bitcoin money laundering.
The deep learning model successfully identified illicit proceeds, new laundering transaction patterns, and previously unknown illegal wallets.
The findings are currently being used to enhance Elliptic’s products.

Elliptic and MIT-IBM Watson AI Lab leverage AI to detect Bitcoin money laundering, revealing new patterns and illegal wallets. The research findings are now improving Elliptic’s products.

Unveiling Hidden Money Laundering Patterns

Elliptic has made the underlying data, consisting of over 200 million transactions, public. This dataset will enable the community to develop new AI methods for identifying illegal cryptocurrency activities. Instead of focusing on transactions made by criminals, a machine learning model is trained to recognize “subgraphs” – chains of transactions indicative of Bitcoin laundering. This approach allows Elliptic to focus on the broader “multi-hop” laundering process rather than the specific on-chain actions of individual criminals.

Testing the Model’s Performance

Elliptic used an undisclosed cryptocurrency exchange to test the model’s ability to detect money laundering attempts. Out of 52 predicted “money laundering” subgraphs ending with deposits to this exchange, 14 were confirmed by the exchange to be linked to flagged users. Given that less than one in 10,000 accounts are flagged, this indicates the model’s strong performance. The firm believes that there is much more potential in thi... Read the full article for FREE at COINOTAG!