AI framework uses a memory module and large language model to detect pseudonymous cross-border illegal trading practices in crypto crackdown
cryptocurrency transactionswith nearly 90 per cent overall accuracy, according to a recent study.
Cryptocurrency transactions are growing rapidly, but their pseudonymous and cross-border nature can provide channels for money laundering and other illegal activities.
cryptocurrencytransactions”. It also “provides an innovative technological pathway for regulatory authorities to combat illicit cryptocurrency transactions and economic crimes”, Sun, a researcher specialising in criminal investigation and cybersecurity, wrote.
The May study, conducted by researchers from the People’s Public Security University of China, which is affiliated with the Ministry of Public Security, comes as authorities continue to focus on cryptocurrency-linked financial crime.
In March, the Supreme People’s Procuratorate reported that prosecutors indicted 3,259 people in 2025 for money laundering involving virtual currencies and underground banks.