Bitcoin Exchange Addresses Identification and Its Application in Online Drug Trading Regulation

Authors

Jiaqi Liang, Institute of Automation, Chinese Academy of SciencesFollow
Linjing Li, Institute of Automation,Chinese Academy of SciencesFollow
Daniel Zeng, Institute of Automation,Chinese Academy of SciencesFollow
Shu Luan, Institute of Automation, Chinese Academy of SciencesFollow
Lu Gan, Institute of Automation, Chinese Academy of SciencesFollow

Abstract

A typical example of the impact of the use of Bitcoin on smart health is the darknet market, the website for Bitcoin-based drug sales, and the anonymity exacerbates regulatory difficulties. Bitcoin exchanges are critical portals that link the physical world with cyberspace through buying and selling Bitcoins using fiat money, such as USD and Euro. Thus, identifying exchange addresses in the Bitcoin transaction network is the primary step to detect drug trading in darknet markets. In this paper, we first validate that the exchange addresses are identifiable. Then we propose identification methods based on embedding representation of transaction network. Experimental results on a dataset with records of one-week transactions validated the effectiveness of our method. This work will offer the basis for subsequent applications in smart health.

Recommended Citation

Liang, Jiaqi; Li, Linjing; Zeng, Daniel; Luan, Shu; and Gan, Lu, "Bitcoin Exchange Addresses Identification and Its Application in Online Drug Trading Regulation" (2019). PACIS 2019 Proceedings. 49.
https://aisel.aisnet.org/pacis2019/49