University of Birmingham experts have created a self-improving algorithm to identify suspicious patterns
A groundbreaking new tool to combat money laundering on blockchains has been created by tech experts at the University of Birmingham.
SynapTrack, an advanced detection system, promises faster and more accurate tracing of cryptocurrency funds linked to criminal activity.
Traditional anti-money laundering and counter-terrorist financing methods often struggle with blockchain’s speed and anonymity, frequently generating a 40 per cent rate of false positives that burden compliance teams with manual reviews and delays.
Developed by UoB computer scientists Dr Pascal Berrang and PhD student Endong Liu, in partnership with blockchain firm Nimiq, SynapTrack uses a validated scoring methodology and a self-improving algorithm to identify suspicious patterns.
It adapts dynamically to evolving criminal tactics, offers cross-chain tracking capabilities, and presents results via a user-friendly dashboard with no need for infrastructure changes.
‘A near-exponential growth in blockchain transactions in recent years’
The prototype was tested on real data from the notorious February 2025 Bybit hack, where North Korean-linked attackers stole approximately $1.5 billion in digital tokens from the exchange – the largest cryptocurrency theft on record. SynapTrack achieved 98 per cent accuracy in tracing the illicit funds.
Dr Pascal Berrang said: “The last few years have seen a near-exponential growth in blockchain transactions. While many of these are legitimate, blockchains are attractive to criminals as funds can be moved very quickly to other jurisdictions.
“Our work with Nimiq and the creation of SynapTrack is addressing this black spot, and will enable more effective regulation, making the whole ecosystem of blockchain safer and more trustworthy.”
The team is now fundraising to prepare for regulatory approval, appoint a CEO, and expand development. They invite cryptocurrency exchanges, financial regulators, and law enforcement agencies to trial the prototype in live environments.
SynapTrack was unveiled at demo day in London staged by the UK government-backed Cyber Security Academic Start-up Accelerator Programme. The event, which showcased various innovations and ptrototypes, was funded by the Department for Science, Innovation and Technology and delivered by Innovate UK.
