Chinese People's Public Security University researcher has developed an AI algorithm to track Bitcoin money laundering, achieving an overall accuracy rate of about 90%.

August 2nd - Researchers from the People's Public Security University of China have developed an AI framework that can detect illegal cryptocurrency transactions with a nearly 90% overall accuracy rate. The research was published in the Chinese peer-reviewed journal "Intelligence Magazine." The corresponding author, Dr. Sun Jingchao (specializing in criminal investigation and cybersecurity), stated that the research "provides a precise, scalable, and interpretable solution for detecting illegal cryptocurrency transactions," offering regulatory agencies an "innovative technical approach" to combatting illegal cryptocurrency transactions and economic crimes. This AI framework utilizes a memory module and a large language model to specifically identify the anonymity and cross-border characteristics of cryptocurrencies to track illicit activities such as money laundering.

This research release comes as China continues to intensify its efforts to combat cryptocurrency-related financial crimes. In March of this year, the Supreme People's Procuratorate of China revealed that prosecutorial organs nationwide had filed charges against 3,259 individuals for money laundering crimes involving virtual currencies and underground banks by the end of 2025. With the rapid growth in cryptocurrency transaction volumes, its anonymity and cross-border nature have provided a channel for illicit fund flows. The independently developed AI detection tool by law enforcement signifies a shift in regulatory technological capabilities from passive tracking to proactive intelligent identification.