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

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arxiv 2010.15082 v1 pith:LXHUGUNP submitted 2020-09-22 cs.CR cs.AI

classification cs.CRcs.AI
keywords blockchaine-crimeblockchainsmoneytoolstransactionsusersactivities
verification ladder T0 review T1 audit T2 compute T3 formal

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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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