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View all- Koelbing MKieseberg KÇulha CGarn BSimos D(2024)Modelling smurfing patterns in cryptocurrencies with integer partitionsIET Blockchain10.1049/blc2.12087Online publication date: 23-Oct-2024
DenseFlow: Spotting Cryptocurrency Money Laundering in Ethereum Transaction Graphs
Authors: 
Dan Lin, Jiajing Wu, Yunmei Yu, Qishuang Fu, Zibin Zheng, Changlin YangAuthors Info & Claims
Dan Lin, Jiajing Wu, Yunmei Yu, Qishuang Fu, Zibin Zheng, Changlin YangAuthors Info & ClaimsPages 4429 - 4438
Abstract
In recent years, money laundering crimes on blockchain, especially on Ethereum, have become increasingly rampant, resulting in substantial losses. The unique features of money laundering on Ethereum, such as decentralization and pseudonymity, pose new challenges for Ethereum anti-money laundering. Specifically, the existence of dense and extensive laundering gangs and intricate multilayered laundering pathways makes it exceptionally challenging for regulators to identify suspicious accounts and trace money flows. To address this issue, we propose an innovative DenseFlow framework that effectively identifies and traces money laundering activities by finding dense subgraphs and applying the maximum flow idea. We conduct multiple experiments on four datasets from Ethereum to validate the effectiveness of our approach. The precision of our DenseFlow is 16.34% higher than the start-of-the-art comparison methods on average, highlighting its distinctive contribution to tackling money laundering issues on blockchain.
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Index Terms
- DenseFlow: Spotting Cryptocurrency Money Laundering in Ethereum Transaction Graphs
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Published In
May 2024
4826 pages
ISBN:9798400701719
DOI:10.1145/3589334
- General Chairs:
- Tat-Seng Chua,
- Chong-Wah Ngo,
- Proceedings Chair:
- Roy Ka-Wei Lee,
- Program Chairs:
- Ravi Kumar,
- Hady W. Lauw
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Published: 13 May 2024
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View all- Koelbing MKieseberg KÇulha CGarn BSimos D(2024)Modelling smurfing patterns in cryptocurrencies with integer partitionsIET Blockchain10.1049/blc2.12087Online publication date: 23-Oct-2024
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