Chinese police academy developed AI framework detecting illicit Bitcoin transactions with 90% accuracy.
Regulation & Gov ·
Researchers at China's People's Public Security University developed an AI system capable of identifying illicit bitcoin transactions at nearly 90% accuracy by leveraging memory modules and large language models to flag pseudonymous cross-border trading activity. The framework addresses risks posed by cryptocurrency's borderless and pseudonymous characteristics, which can facilitate money laundering and financial crime. China's prosecutors indicted 3,259 individuals in 2025 for money laundering tied to virtual currencies and underground banking, underscoring ongoing enforcement efforts in the sector.