Elliptic, a bitcoin surveillance startup based in the United Kingdom, has raised US$5 million from prominent venture capital firms and angel investors to identify illicit activity on the Bitcoin blockchain and provide actionable intelligence to financial institutions and law enforcement agencies.
James Smith, one of the co-founders of Elliptic stated that the company’s software implements an artificial intelligence-based technology to explore the Bitcoin blockchain network for patterns of suspicious transactions and activity. The Elliptic platform can be used by online exchanges and law enforcement agencies to detect unusual transactions and track their sources and origins.
“People realise that if Bitcoin and blockchain is going to be taken seriously you have to start acting like the rest of the world,” said Smith.
One of the main criticisms targeted towards Bitcoin and its transactions are their anonymity. In nature, the Bitcoin network and its transactions are not transparent. Still, a substantially high number of criminals and money launderers use bitcoin to transfer money internationally. With sophisticated tools and blockchain explorers, some transactions can be traced back to its origin, making it possible for government agencies and law enforcement to track the initiators of the transaction. The elimination of fraudulent transactions and money laundering attempts would