How to Not Get Caught When You Launder Money on Blockchain?

• URL: http://arxiv.org/abs/2010.15082v1
• Date: Tue, 22 Sep 2020 02:12:15 GMT
• Title: How to Not Get Caught When You Launder Money on Blockchain?
• Authors: Cuneyt G. Akcora, Sudhanva Purusotham, Yulia R. Gel, Mitchell Krawiec-Thayer, Murat Kantarcioglu
• Abstract summary: Public blockchains have become a hotbed of research for developing AI tools to detect and trace users and transactions that are related to e-crime. We argue that following a few select strategies can make money laundering on blockchain virtually undetectable with most of the existing tools and algorithms.
• Score: 20.970223434542508
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: The number of blockchain users has tremendously grown in recent years. As an unintended consequence, e-crime transactions on blockchains has been on the rise. Consequently, public blockchains have become a hotbed of research for developing AI tools to detect and trace users and transactions that are related to e-crime. We argue that following a few select strategies can make money laundering on blockchain virtually undetectable with most of the existing tools and algorithms. As a result, the effective combating of e-crime activities involving cryptocurrencies requires the development of novel analytic methodology in AI.

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