Researchers at China Public Security University developed an AI algorithm to track Bitcoin money laundering, with an overall accuracy rate of about 90%

Comparatively, researchers at the People's Public Security University of China have developed an AI framework that can detect illegal cryptocurrency transactions with an overall accuracy rate of close to 90%. The study was published in the Chinese peer-reviewed journal “Intelligence Journal”. Corresponding author Dr. Sun Jingchao (specializing in criminal investigation and cybersecurity) pointed out that the study provided an accurate, marketable, and explainable solution to detect illegal cryptocurrency transactions, and provided an innovative technical path for regulators to combat illegal cryptocurrency transactions and economic crime. Using memory modules and large language models, the AI framework specifically identifies the anonymity and cross-border characteristics of cryptocurrencies to track illegal transactions such as money laundering.

The study comes at a time when China continues to step up its crackdown on crypto-related financial crimes. China's Supreme People's Procuratorate revealed in March of this year that throughout 2025, the procuratorial authorities had prosecuted 3,259 people for money laundering crimes involving virtual currency and underground money stores. As the volume of cryptocurrency transactions grows rapidly, its anonymity and cross-border characteristics provide a channel for illegal capital flows. The AI detection tool independently developed by the police indicates that regulatory technology is being upgraded from passive tracking to active intelligent identification.

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