Bitcoin
Bitcoin Forensic Analysis Reveals Money Laundering Rings and Criminal Proceeds
May 1, 2024WritingFinancial Crime/Forensic Analysis
A forensic analysis of a graph dataset containing transactions on the Bitcoin blockchain has revealed clusters associated with illicit activity and money laundering, including the detection of criminal proceeds sent to a cryptocurrency exchange and previously unknown wallets belonging to a Russian darknet marketplace.
O discoveries come from Elliptic in collaboration with researchers at the MIT-IBM Watson AI Lab.
The 26GB dataset, dubbed Elliptical2is a “large graph dataset containing 122 thousand labeled subgraphs of Bitcoin clusters in a background graph consisting of 49 million node clusters and 196 million edge transactions,” the co-authors he said in an article shared with The Hacker News.
Elliptic2 is based on Elliptical Dataset (also known as Elliptic1), a trading chart that was released in July 2019 with the aim of combating financial crime using graphical convolutional neural networks (GCNs).
The idea, in a nutshell, is to discover illicit activities and money laundering patterns, taking advantage of blockchain pseudonymity and combine it with knowledge about the presence of licit (e.g. exchange, wallet provider, miner, etc.) and illicit (e.g. darknet market, malware, terrorist organizations, Ponzi scheme, etc.) services on the network .
“Using machine learning at the subgraph level – that is, the groups of transactions that constitute money laundering cases – can be effective in predicting whether crypto transactions constitute proceeds of crime,” said Tom Robinson, chief scientist and co-founder of Elliptic. Hacker news.
“This is different from conventional crypto AML solutions, which rely on tracking funds from known illicit wallets or pattern matching with known money laundering practices.”
The study, which experimented with three different subgraph classification methods in Elliptic2, such as GNN-Seg, Sub2VecIt is GLASSidentified subgraphs that represented cryptocurrency exchange accounts potentially involved in illegitimate activities.
Additionally, it made it possible to trace the origin of funds associated with suspicious subgraphs to several entities, including a cryptocurrency mixer, a Panama-based Ponzi scheme, and an invite-only Russian dark web forum.
Robinson said that just considering the “shape” – the local structures within a complex network – of money laundering subgraphs has proven to be an already effective way of flagging criminal activity.
Further examination of the predicted subgraphs using the trained GLASS model also identified known cryptocurrency laundering patterns, such as the presence of peeling chains and nested services.
“A peel chain is where a small amount of cryptocurrency is ‘peeled’ to a destination address, while the remainder is sent to another address under the user’s control,” Robinson explained. “This happens repeatedly to form a peeling chain. The pattern may have legitimate financial privacy purposes, but it may also be indicative of money laundering, especially when the ‘peeled’ cryptocurrency is repeatedly sent to an exchange.”
“This is a known crypto laundering technique and has an analogy to ‘smurfing’ in traditional finance – so the fact that our machine learning mode has independently identified it is encouraging.”
As for next steps, research is expected to focus on increasing the accuracy and precision of these techniques, as well as extending the work to other blockchains, Robinson added.
Did you find this article interesting? Follow us on Twitter It is LinkedIn to read more exclusive content we post.
Fuente
Bitcoin
‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump
Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.
The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.
Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.
Sign up for free CryptoCodex now—A daily five-minute newsletter for traders, investors, and crypto curious people that will keep you up to date and ahead of the bitcoin and crypto bull market
Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.
Getty Images
The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.
“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.
“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”
John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”
Sign up for CryptoCodex now—A free daily newsletter for the crypto-curious
Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.
Forbes Digital Assets
Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.
According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”
The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.
Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.
How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.
Please note that our Privacy Policy, terms of use, cookiesIt is do not sell my personal information Has been updated.
CoinDesk is a awarded media outlet that covers the cryptocurrency industry. Its journalists follow a strict set of editorial policies. In November 2023, CoinDesk has been acquired by the Bullish group, owner of Optimistica regulated digital asset exchange. The Bullish Group is majority owned by Block.one; both companies have interests CoinDesk has a portfolio of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial board to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.
The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.
Elon Musk’s X Money is about to change cryptocurrencies FOREVER
Solana Update: 2025 Potential and SOL Price Predictions You MUST SEE!!
Crypto News: Bitcoin BREAKING ATHs, Trump Memecoin, XRP & SOL Flying & More!
China’s $75 billion crypto secret discovered: What it means for you
$500 to $500,000: BIG Cryptocurrency Gains with a SMALL Wallet!?
Crypto News: Bitcoin, ETH Price, CPI Print, PYTH, WIF & MORE!!
Crypto News: Bitcoin Price, ETF, ETH, WIF, HNT & MORE!!
Metasphere Labs announces follow-up event regarding
Solana price potential?! Check out THIS update if you own SOL!!
Who Really CONTROLS THE MARKETS!! Her plans REVEALED!!
Elon Musk’s X Money is about to change cryptocurrencies FOREVER
Solana Update: 2025 Potential and SOL Price Predictions You MUST SEE!!
Crypto News: Bitcoin BREAKING ATHs, Trump Memecoin, XRP & SOL Flying & More!
China’s $75 billion crypto secret discovered: What it means for you
$500 to $500,000: BIG Cryptocurrency Gains with a SMALL Wallet!?
-
Videos9 months agoCrypto News: Bitcoin, ETH Price, CPI Print, PYTH, WIF & MORE!!
-
Videos9 months agoCrypto News: Bitcoin Price, ETF, ETH, WIF, HNT & MORE!!
-
DeFi9 months agoMetasphere Labs announces follow-up event regarding
-
Videos9 months agoSolana price potential?! Check out THIS update if you own SOL!!
-
Videos8 months agoWho Really CONTROLS THE MARKETS!! Her plans REVEALED!!
-
DeFi6 months agoPump.Fun Overtakes Ethereum in Daily Revenue: A New Leader in DeFi
-
DeFi6 months agoDegens Can Now Create Memecoins From Tweets
-
News6 months agoNew bill pushes Department of Veterans Affairs to examine how blockchain can improve its work
-
News6 months agoLawmakers, regulators to study impact of blockchain and cryptocurrency in Alabama • Alabama Reflector
-
Bitcoin6 months ago1 Top Cryptocurrency That Could Surge Over 4,300%, According to This Wall Street Firm
-
Ethereum8 months agoComment deux frères auraient dérobé 25 millions de dollars lors d’un braquage d’Ethereum de 12 secondes • The Register
-
Videos8 months agoCryptocurrency News: BTC Rally, ETH, SOL, FTM, USDT Recover & MORE!