money laundering detecting data set

Elliptic’s data set defense for crypto money laundering

The blockchain analytics provider Elliptic has developed a new data set to detect illicit cryptocurrency transactions. It has analyzed around 200,000 bitcoin ($6 billion) transactions to identify activities associated with money laundering and ransomware.

This data set of Elliptic claims itself as the largest set of labeled transaction data in the world. Additionally, it’s accessible for any cryptocurrency. It aims to recognize transactions based on money laundering,  sanctions violations or terrorist financing. Meanwhile, it will lessen the compliance cost and eradicate such illicit activities.

The data set design includes various machine learning procedures. It includes Logistic Regression, Random Forest, Multilayer Perceptrons, and Graph Convolutional Networks (GCN). The GCN is a new method and carries the ability to collect information in a complex transaction network.

The rapid development in the crypto sectors requires strict AML defense and policies. Therefore, the Financial regulators of many countries are trying to strengthen their administration. However, there are still many crypto-based crimes taking place around the globe. Recently in July, an Israeli hacker was arrested in charge of stealing $1.7 million worth of crypto. This is just a single incident, and we have many more out there to deal with. We hope such developments will reduce the rate of such crypto illicit activities.

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