Rohan Dave, Sachin Kathiresan, Victoria Ren, Reid Smith , Duc Thang Tran, Dr. Murat Kantarcioglu
Cryptocurrencies have opened up numerous possibilities for innovation in financial technology. However, as with any cutting-edge technology, new challenges often emerge. One of these challenges arose from the virtual currency mixer, Tornado Cash. Originally intended as a privacy solution to the public blockchain, it allowed users to mix their coins with others, making it difficult to trace transactions that would otherwise be visible to anyone. Unfortunately, some malicious actors used this protocol for money laundering, resulting in the U.S. government imposing a ban on the tumbler. In this research project, we employ blockchain fundamentals and data analysis techniques to investigate transaction patterns and anomalies, identifying potential instances of money laundering. Our objective is to create a strategy that can assist law enforcement agencies in detecting illegal activity on platforms similar to Tornado Cash in the future.
