Decrypting Criminal Transaction Patterns in Cryptocurrency

Abstract

This paper introduces an approach to detect a thief’s wallet by analyzing linked transactions connected to centralized exchanges mandating KYC verification. The proposed methods are designed to provide valuable insights into the intricate flow of funds and the behavioral patterns of malicious actors, explicitly focusing on thieves. By inputting a thief’s wallet address, our analysis examines associated transactions, capturing vital details such as the amount of Ethereum (ETH) transferred and all related transactions, including those involving ERC-20 tokens. The primary objective is comprehending the money flow among different addresses, emphasizing wallets interacting with centralized exchanges. By monitoring the movements of ETH and ERC-20 tokens, this analysis aims to identify suspicious transactions and uncover behavioral patterns indicative of illicit activities. Leveraging this analytical approach, we can track the thief’s identity, making a substantial contribution to the prevention and detection of cryptocurrency theft, thus ensuring the security of blockchain ecosystems.