- Elliptic reported that it has made progress in detecting Bitcoin money laundering using artificial intelligence.
Elliptic’s detection methods are being improved by the company, according to a statement. The effort is documented in a recently published research article that was “co-authored with researchers from the MIT-IBM Watson AI Lab.”
According to a statement from the firm, a deep learning model is used to successfully identify previously undiscovered illicit wallets, new money laundering transaction patterns, and proceeds of crime deposited at a crypto exchange.
Elliptic reported that it used a dataset with more than 200 million transactions to evaluate the improved capabilities.
According to Elliptic, a machine learning model is trained to recognize “subgraphs,” or sequences of transactions that indicate Bitcoin being laundered, as opposed to transactions done by illegal actors. This technique allows us to focus on the ‘ multi-hop’ laundering process more broadly rather than the on-chain behavior of individual illicit actors, by identifying these subgraphs instead of illicit wallets.
Blockchains enable the application of machine learning to more thoroughly analyze transactions in comparison to “typically siloed” traditional financial activities, claims Elliptic.
Elliptic has a track record of detecting cryptocurrency transactions from bad parties, such as terrorist organizations.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
