Blockchain Papers

Seung Ah Lee, George Milunovich

No abstract is available for this record.

Johrha Alotibi, Badriah Almutanni, Tahani Alsubait, Hosam Alhakami · 5 authors

In recent years, money laundering activities have shown rapid progress and have indeed become the main concern for governments and financial institutions all over the world. As per recent statistics, $800 billion to $2 trillion is the estimated value of money laundered annually, in which $5 billion of the total is obtained from cryptocurrency money laundering. As per the financial action task force (FATF), the criminals may trade illegally obtained fiat money for the cryptocurrency. Accordingly, detecting and preventing illegal transactions becomes a serious threat to governments and it has been indeed challenging. To combat money laundering, especially in cryptocurrency, effective techniques for detecting suspicious transactions must be developed since the current preventive efforts are outdated. In fact, deep learning and machine learning techniques may provide novel methods to detect suspect currency movements. This study investigates the applicability of deep learning and machine learning techniques for anti-money laundering in cryptocurrency. The techniques employed in this study are Deep Neural Network (DNN), random forest (RF), K-Nearest Neighbors(KNN), and Naive Bayes (NB) with the bitcoin elliptic dataset. It was observed that the DNN and random forest classifier have achieved the highest accuracy rate with promising findings in decreasing the false positives as compared to the other classifiers. In particular, the random forest classifier outperforms DNN and achieves an F1-score of 0.99%.

Hanya Zhang

Bitcoin has had a volatile journey since it was launched in 2009, the current main impressions of Bitcoin are mostly negative, resource-consuming, endangering financial security, and even associated with crimes, such as fraud, money laundering, and so on. However, this paper analyzes the origin of bitcoin and with the creative combination of existing computer technology, the construction of a complete transaction system was founded by Bitcoin, which has caused a huge impact in the fields of finance, technology and the environment. We have to acknowledge its shortcomings and deficiencies in some aspects, On the other hand, realize that Bitcoin has brought great progress and reflection in the fields of finance, technology, environment, etc.

Yaodan Zhang

With the outbreak of the Russian-Ukrainian war, more and more Western countries have imposed sanctions on the assets of the Russian people overseas, which have triggered a crisis of confidence in the world's currency, the dollar.At this time, the popularity of Bitcoin has also resurfaced.People are starting to think about the future of Bitcoin.This paper starts from the basic technical means of bitcoin and discusses the possibility of the future development of bitcoin by analyzing the characteristics of bitcoin.We believe that although Bitcoin cannot become a world currency in the future, it can become an investment asset and a convenient means of payment.

Michał Wnęk

Objectives: With each passing year, cryptocurrencies are becoming more popular and play an increasinglyimportant role in economic trading. This growing importance is related not only to the increased interest in thissubject, but also to the growing theoretical and practical problems. The author’s goal is to portray circumstances and implications of the adoption of cryptocurrency by the Republic of El Salvador – which recently included bitcoin as part of the state budget – as well as discuss possibility of similar precedent in Poland. Research Design & Methods: Cryptocurrencies are still a relatively new invention and, simultaneously, a complicated one. Therefore, reliable sources and references are still scarce, and those which exist are mostly in the Internet space. In the following article, I have used dogmatic-theoretical method of research in subsequent steps; I analyse proper subject literature, journalistic reports, as well as legal regulations. Findings: El Salvador has become the first country in history that had decided to equate the status of a cryptocurrency with its native currency. Recently, it was also followed by the Central African Republic. However, the Republic of El Salvador takes a step forward and includes bitcoin as part of the state budget, thus bindingthe country’s economic condition with the market pricing of cryptocurrency. A one-year’s investment has, sofar, gone negatively for the country, as Bitcoin price has declined sharply throughout the year. When comparingthe situation of El Salvador to the Polish reality, it should be stated that cryptocurrencies may, in the current legalstate, be part of the state budget. However, this applies only to single instances; therefore, such a negligible share can be omitted in further discussion. Certainly, adoption on El Salvador’s scale is not currently possible. Apart from obvious risks, it would require a thorough reform of not only the legal system, but, above all, the economic mentality of the society. Implications/Recommendations: Given the fact that Bitcoin is a cryptocurrency with neither issuer nor centralauthority, such step is to be considered a significant precedent in the history of world’s economy and for cryptocurrencies themselves. Due to the well-known price volatility of the market, the adoption seems to be highly risky, but, if successful, it may bring measurable benefits to country’s economy. However, the true question is – is it justified to base the state’s budget, which is economic foundation of society, on cryptocurrencies? Almost a year after the adoption, bitcoin price is significantly lower and, consequently, El Salvador’s loss is higher. Yet, bitcoin proved to recover many times – even after slumping over 90%. To conclude, it is advisable to observe El Salvador’s economic situation in order to be able to more precisely define the impact of such a decision in the future, both on the country and on the cryptocurrency market itself. Contribution/Value Added: The adoption of cryptocurrencies by El Salvador was broadly discussed not onlyin the cryptocurrency community, but also in the financial and economical ones. Journalists from around the world as well as international institutions such as the International Monetary Fund and the World Bank all became interested in the situation of El Salvador. In this article, I organise information, assessments, and opinions of the international community regarding the Salvadoran precedent. I also indicate whether and at what level cryptocurrencies can be part of the Polish budget under current legal regulations. The Salvadorian case, due to being a precedent, has already become a valuable lesson for the future legal proposals, research, and discussion. Yet, the development of such a situation may be surprising, which is why further observation is advisable. Article classification: theoretical (conceptual) article JEL classification: K23, E58, F53

Mélissa Fortin, Erica Pimentel

No abstract is available for this record.

Matheus Lolli Pazeto

No abstract is available for this record.

M. Schullitsch, M. Striedner, V. Mühlbacher, D. Silian · 11 authors

This paper gives a short overview of the financial world affected through COVID-19. To be more precise, it is about the changing (negative) interest rates of Europe, the US as well as India. At the same time, the paper discusses the Bitcoin exchange rate as well as the current situation regarding money laundering.

Kenneth See

Purpose The purpose of this paper is to examine the currently known techniques to tackle money laundering in Bitcoin mixers, and examine what gaps exist that would allow a criminal to get away with laundering Bitcoin obtained through illicit activities. Design/methodology/approach This paper first establishes the relevant properties of Bitcoin, how transactions occur over the Bitcoin network and then introduces the Bitcoin transaction graph as an important data structure for any analysis of Bitcoin transactions. Next, the paper outlines how Bitcoin mixing works, along with the relevant properties of mixers that would be relevant for money laundering. The paper then assesses the known methods for identifying mixed transactions within the Bitcoin network, followed by an assessment on identifying money laundering activities on known mixed transactions. Findings This paper argues that there remains a gap for criminals to launder money through Bitcoin mixing services as known methods would unlikely be able to trace a tainted transaction that goes through a decentralized mixer that uses off-chain communication techniques to coordinate the mixing and charges randomized mixing fees. Research limitations/implications The study of known methods is restricted to literature published in the public domain. There are private organizations that are tackling similar problems, but their methods are not published and therefore cannot be included in this paper. Originality/value To best of the author’s knowledge, this is the first paper that performs a contemporaneous review on anti-money laundering in the context of Bitcoin mixing. This paper could assist regulators and policymakers in their understanding of Bitcoin mixers and provide guidance on where they should focus their resources to address the money laundering problem of Bitcoin mixing.

Deven R. Desai, Mark A. Lemley

No abstract is available for this record.

Hilmar Páll Stefánsson, Huginn Sær Grímsson, Jón Kristinn Þórðarson, María Óskarsdóttir

Money laundering is a serious problem worldwide, especially in the crypto market. This is mostly because of the anonymity that many cryptocurrencies offer. That is one of the reasons why cryptocurrencies are a haven for money laundering, because it is easier for criminal entities to buy the currency and then trade it for real fiat money. Detecting money laundering in cryptocurrency can be tricky because the crypto network is large and convoluted and nearly impossible to analyze by hand. What we can do is look at addresses that took part in transactions as actors and then use machine learning to predict what addresses are possibly laundering money. In this paper we intend to analyze methods that can be used to detect money laundering in Bitcoin using machine learning to empower investigators to more accurately and efficiently determine whether a suspicious activity is money laundering.

Dun Jia, Yifan Li

No abstract is available for this record.

Achraf Guidara

According to previous research, cryptocurrency is a driver of money laundering and is associated with several risks (Fletcher, Larkin, & Corbet, 2021; Teichmann & Falker, 2020; Tsuchiya & Hiramoto, 2021). As a result, the purpose of this paper is to concentrate on empirical research in the accounting and finance fields that deal with the impact of cryptocurrencies on the phenomenon of money laundering. To identify relevant literature, we use the following keywords including “cryptocurrency or digital money” and “bitcoin and money laundering”. We identify 28 research papers published between 2011 and 2021. The findings of the studies that were reviewed emphasized the importance of developing a legal framework for digital currencies. Furthermore, it was revealed that all stakeholders play an important role in lowering the risk of money laundering and illicit activities. The findings highlight the critical role that banks, regulators, and all stakeholders play in reducing money laundering risks. These findings may have policy implications for governments aiming to improve cryptocurrency laws and regulations by enforcing financial security standards and laws and monitoring individuals’ and firms’ compliance with them. The review identifies some of the literature’s limitations and suggests future research directions

Yanan Gong, Kam-Pui Chow, Hing‐Fung Ting, Siu‐Ming Yiu

No abstract is available for this record.

Eric Budish

No abstract is available for this record.

Florence G’Sell, Florian Martin-Bariteau

No abstract is available for this record.

George Milunovich, Seung Ah Lee

No abstract is available for this record.

Changyi Lin, Hsiang-Kai Liao, Fu-Ching Tsai

In recent years, the application of virtual currency has become a part of people's life. The decentralization and anonymity of Bitcoin have made it a favorite tool for many criminals. Therefore, how to trace illegal activities in Bitcoin transactions has become one of the most important research areas. This paper systematically collects 25 research results in this field since 2018, and divides them into three areas, i.e., supervised learning, unsupervised learning, and topological analysis. The supervised learning method based on machine learning is the current mainstream in this research field. However, we believe that the model can achieve more accurate results after combining unsupervised learning and topological analysis features. Moreover, topology analysis can help to observe the entire or specific part of the Bitcoin trading network from a macro perspective so as to discover the hidden illegal activities. In addition, data visualization techniques can provide structural insights to understand the Bitcoin trading network.

Arzu Özkan, Umutcan Korkmaz, Cemal Dak, Enis Karaarslan

Disaster and emergency management are under the responsibility of many organizations and there are serious coordination problems in post-disaster crisis management. This paper proposes a decentralized non-governmental organization resource management system for disasters (NGO-RMSD / STK-AKYS). This system is based on blockchain technology and it will enable the non-governmental organizations (NGO) and public institutions to manage and coordinate the resources in a trusted environment in the case of disasters. A proof of concept implementation is developed by using the Quorum blockchain framework which is more energy-efficient than crypto currency-based blockchain solutions. Smart contracts are developed for the autonomous working of the system. These smart contacts are used for the verification of the needs of the one who is in need, delivering resources to the right people, and identifying the urgent needs. The system aims to reach more disaster victims in a more timely manner. NGO-RMSD is designed according to the needs of the NGOs in the field. The application is shared with the free software license and further development with the community is aimed.

Zhuoming Gu, Dan Lin, Jiajing Wu

No abstract is available for this record.

Małgorzata Kutera

PURPOSE: The main purpose of this paper was to identify the current scope of research on cryptocurrencies as a subject of fraud. Detailed research questions related to the determination of contemporary trends of the conducted research and the definition of potential opportunities for further investigation of this topic. One of the questions also concerned identifying the most common crimes committed using cryptocurrencies. METHODOLOGY: The study is based on a systematic literature review (SLR) of 57 publications available on the Scopus database. A bibliometric and descriptive analysis of selected literature items was carried out. Then, vital thematic clusters were separated, and an in-depth content analysis was performed. FINDINGS: The detailed bibliometric and descriptive analysis showed that cryptocurrencies as a subject of financial fraud are generally a new area of scientific research, although it is developing quite intensively. The relatively small number of publications, compared to other similar areas, also indicates that this topic has not yet been explored widely by scientists, and many different research trends can be created in it. Ultimately, the following key research areas were identified: types of cryptocurrency fraud, crime detection methods, risks related to blockchain technology, money laundering, and legal regulations regarding cryptocurrencies. It was also possible to identify that money laundering is currently the most common fraud. However, it has been pointed out that the second most frequent fraud is financial pyramids based on the Ponzi scheme. IMPLICATIONS: The paper clearly presents the main research trends on using cryptocurrencies in criminal activities. At the same time, it was emphasized that, compared to other research areas, this topic is relatively new. Therefore, there is a wide possibility of exploring not only existing but also undiscovered research trends. In addition, key types of fraud in economic practice have been identified, which is particularly important for financial market participants. It was clearly indicated which transactions bear the highest risk. It is also worth paying attention to the critical timeliness of the topic, as the scale of crimes involving cryptocurrencies has recently been growing rapidly. The study confirms the insufficient scope of legal regulations, which are not able to strengthen the security of economic transactions adequately. Therefore, it can be a clear indication for the governments of individual countries or international institutions for further efficient changes to the law. ORIGINALITY AND VALUE: The contribution of this study is threefold. It is one of the first research papers showing the results of a systematic literature review (SLR) combined with a bibliographic and in-depth analysis of the content of publications in this field. During the work, the VOSviewer software was also used, which enabled objective identification of the main thematic clusters based on the occurrences and link strength of keywords included in the publications. Secondly, the key types of fraud have been identified that, at the same time, cause the most significant financial loss. This allowed for the establishing of directions for further research, which have profound practical implications for market participants. Some of them relate to the need to develop and implement modern computer applications, allowing for the detection of a wider range of emerging abuses.

Jie Cai, Bin Li, Jiale Zhang, Xiaobing Sun · 5 authors

Smart contract security has drawn extensive attention in recent years because of the enormous economic losses caused by vulnerabilities. Even worse, fixing bugs in a deployed smart contract is difficult, so developers must detect security vulnerabilities in a smart contract before deployment. Existing smart contract vulnerability detection efforts heavily rely on fixed rules defined by experts, which are inefficient and inflexible.To overcome the limitations of existing vulnerability detection approaches, we propose a GNN based approach for smart contract vulnerability detection. First, we construct a graph representation for a smart contract function with syntactic and semantic features by combining abstract syntax tree (AST), control flow graph (CFG), and program dependency graph (PDG). To further strengthen the presentation ability of our approach, we perform program slicing to normalize the graph and eliminate the redundant information unrelated to vulnerabilities. Then, we use a Bidirectional Gated Graph Neural-Network model with hybrid attention pooling to identify potential vulnerabilities in smart contract functions.

Fernando Álvarez, David Argente, Diana Van Patten

A currency's essential feature is to be a medium of exchange. We leverage a quasi-natural experiment-El Salvador as the rst country to make bitcoin legal tender-to study a cryptocurrency's potential to be used in daily transactions. The government also launched and provided incentives to download and use a digital wallet named Chivo, which shares features with Central Bank Digital Currencies (CBDCs) and allows users to trade bitcoin and dollars. Were Chivo Wallet and bitcoin actually adopted after this "big push"? Conducting a representative face-to-face survey and relying on blockchain data to obtain all Chivo transactions, we document how usage of digital payments and bitcoin is low, concentrated, and has been decreasing over time. We nd that privacy concerns are key barriers to adoption, which speaks to a policy debate on crypto and CBDCs that has had anonymity at its core. We also estimate the technology's adoption cost and its network externalities.

Babajide Oluwaseun Olaogun, Adaobu Amini-Philips, Ahmed K. Ibrahim

The rapid evolution of digital currencies and blockchain technologies has created opportunities and challenges in the context of global trade. Traditional fiat payment systems, while widely adopted and regulated, often face limitations in cross-border transactions, including high fees, delayed settlements, and limited transparency. Conversely, cryptocurrency and stablecoin-based platforms offer faster and more transparent mechanisms but remain fragmented and lack integration with established financial infrastructures. This proposes an interoperability concept for connecting fiat and crypto payment platforms to facilitate efficient, secure, and cost-effective international trade settlements. The conceptual framework emphasizes a hybrid architecture that bridges fiat processors, crypto wallets, and exchange gateways through an interoperability layer. This layer employs technical mechanisms such as atomic swaps, cross-chain settlement protocols, and smart contract automation to enable seamless conversion, routing, and reconciliation of transactions. Operational considerations, including transaction monitoring, liquidity management, and real-time reporting, are integrated to ensure reliability and mitigate operational risk. Regulatory alignment is central to the framework, addressing anti-money laundering (AML), know-your-customer (KYC), tax compliance, and cross-jurisdictional legal requirements. The model further incorporates risk assessment mechanisms to manage foreign exchange volatility, crypto price fluctuations, and system-level vulnerabilities. Evaluation metrics focus on efficiency, cost-effectiveness, transparency, and transaction reliability, providing actionable insights for stakeholders including financial institutions, multinational corporations, and payment service providers. Additionally, the framework lays the groundwork for future research involving AI-driven predictive analytics, multi-chain decentralized finance (DeFi) integration, and standardized protocols for global regulatory harmonization. By establishing a structured approach to fiat-crypto interoperability, this concept enables faster, more transparent, and resilient international payments. It facilitates strategic decision-making, reduces transactional friction, and supports the evolution of a unified, hybrid global payment ecosystem that aligns technological innovation with operational and regulatory requirements.