Researchers from the People's Public Security University of China have developed an AI algorithm to track Bitcoin money laundering, with an overall accuracy rate of approximately 90%.

Researchers from the Chinese People's Public Security University have developed an AI framework that detects illegal cryptocurrency transactions with an overall accuracy of nearly 90%. The study was published in the Chinese peer-reviewed journal *Intelligence Magazine*. Corresponding author Dr. Sun Jingchao, who specializes in criminal investigation and cybersecurity, noted that the research "provides an accurate, scalable, and interpretable solution for detecting illegal cryptocurrency transactions" and offers an innovative technical path for regulators to crack down on illegal crypto activities and economic crimes. The AI framework leverages memory modules and large language models, specifically targeting the anonymity and cross-border traits of cryptocurrencies to track illegal transactions such as money laundering. The research comes as China continues to intensify its efforts against crypto-related financial crimes. In March this year, the Supreme People's Procuratorate disclosed that procuratorial organs prosecuted 3,259 people for money laundering involving virtual currencies and underground banks in 2025. As cryptocurrency trading volumes surge, its anonymous and cross-border nature creates channels for illegal fund flows; this police-developed AI detection tool marks an upgrade in regulatory technical means from passive tracking to active intelligent identification.