Researchers from the People’s Public Security University of China have developed an artificial intelligence system capable of identifying illicit cryptocurrency transactions with 89.4% overall accuracy, according to the South China Morning Post. However, a 10.6% error rate applied to Bitcoin’s 400,000 daily transactions generates a considerable volume of false positives requiring manual sorting. China has banned crypto activities since September 2021, but the market has gone underground, with USDT serving as the base currency for underground exchange bureaus and scam centers in Southeast Asia. These on-chain analysis tools, already sold by local companies such as SlowMist or Beosin to Chinese provincial police forces, leverage public blockchain ledgers to trace suspicious flows.
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