Combating Money Laundering with Machine Learning – Applicability of Supervised-Learning Algorithms at Cryptocurrency Exchanges

This study aims to explore how to deanonymize cryptocurrency money launderers with the help of machine learning (ML). Money is laundered through cryptocurrencies by distributing funds to multiple accounts and then reexchanging the crypto back. This process of exchanging currencies is done through cryptocurrency exchanges. Current preventive efforts are outdated, and ML may provide novel ways to identify illicit currency movements. Hence, this study investigates ML applicability for combatting money laundering activities using cryptocurrency.