Chinese Researchers Develop AI Framework to Track Bitcoin Money Laundering with 90% Accuracy

New AI tool detects illicit crypto transactions with 90% accuracy, aiding China's crackdown on virtual currency crimes and underground banking networks.

Woofun AI reports that researchers from the People's Public Security University of China have created an AI framework capable of identifying illegal cryptocurrency transactions with approximately 90% overall accuracy. Published in "Intelligence Magazine", the study utilizes a memory module and large language model to address the anonymity and cross-border nature of digital assets, specifically targeting Bitcoin money laundering. Corresponding author Dr. Sun Jingchao stated the system offers regulatory bodies a scalable and interpretable technical solution for combating economic crimes.

This development aligns with intensified Chinese efforts against crypto-related financial offenses. Data from the Supreme People's Procuratorate indicates that by the end of 2025, authorities filed charges against 3,259 individuals for money laundering involving virtual currencies and underground banks. The introduction of this proactive identification tool marks a shift from passive tracking to intelligent detection in law enforcement capabilities.