This AI algorithm tracks illicit crypto transactions with 90% accuracy
What's the story
Researchers from China's national police academy have developed an artificial intelligence (AI) system capable of detecting illicit cryptocurrency transactions with nearly 90% accuracy. The study, published in the peer-reviewed Journal of Intelligence, highlights the potential of this innovative technology to combat money laundering and other illegal activities associated with cryptocurrencies.
Technological breakthrough
AI framework offers solution for detecting illicit transactions
The AI framework developed by the researchers offers a "precise, generalisable and interpretable solution for detecting illicit cryptocurrency transactions," according to Dr. Sun Jingchao, the study's corresponding author.
He emphasized that this innovative technology could serve as a "pathway for regulatory authorities to combat illicit cryptocurrency transactions and economic crimes."
The study was conducted by experts from the People's Public Security University of China, an institution affiliated with China's Ministry of Public Security.
Growing concern
Surge in cryptocurrency-related financial crimes
The development of this AI framework comes at a time when China is witnessing a surge in cryptocurrency-related financial crimes.
In March, the Supreme People's Procuratorate revealed that prosecutors had indicted 3,259 individuals in 2025 for money laundering involving virtual currencies and underground banks.
This growing trend highlights the need for advanced technological solutions like the one developed by researchers from China's national police academy.