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AI framework can detect illicit crypto transactions with nearly 90% accuracy
The May study was conducted by researchers at the People’s Public Security University of China, as Chinese authorities step up enforcement against virtual-currency linked money laundering.
Researchers from China’s national police academy have developed an AI framework aimed at detecting illicit cryptocurrency transactions with nearly 90% overall accuracy, according to a study described by SCMP Economy. The report said the framework is designed to address the risks tied to cryptocurrency’s pseudonymous and cross-border nature, which can facilitate money laundering and other crimes.
The article said the study was published in May by researchers from the People’s Public Security University of China, which is affiliated with the Ministry of Public Security. In the piece, Sun, a researcher focused on criminal investigation and cybersecurity, wrote that the work offers a technological pathway for regulatory authorities to combat illicit crypto activity and related economic crimes.
SCMP Economy noted that the research comes as Chinese authorities continue to focus on cryptocurrency-linked financial crime. It also cited a March update from the Supreme People’s Procuratorate, which reported that prosecutors indicted 3,259 people in 2025 for money laundering involving virtual currencies and underground banks.