New system provides a next-generation anti-money laundering framework for blockchain systems, with automatic adaptation to new criminal tactics.
An advanced detection system to identify and trace blockchain funds connected with criminal activity has been presented today at the Annual CyberASAP Demo Day in London.
The system, called SynapTrack, enables faster and more accurate detection of fraudulent activity using blockchains and cryptocurrencies, where traditional anti-money laundering and counter-terrorist financing systems struggle to keep pace.
Although current fraud detection methods pick up unusual activity, they deliver an extremely high rate (40%) of false positive reports. These require manual checking by compliance professionals, resulting in backlogs in identifying and acting on suspicious activity.
The SynapTrack system is designed to deliver a substantially lower rate of false positives. It has already been tested using real-life data from the notorious 2025 Bybit hack, where criminals stole $1.5bn of digital tokens from a cryptocurrency exchange. SynapTrack traced the hacker with 98% accuracy.
The team behind SynapTrack is keen to hear from exchanges, financial regulators or law enforcement agencies who want to test the prototype in real-world conditions.
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.
SynapTrack uses a validated methodology to score the likelihood of transactions being part of a money laundering scheme. It has a self-improving algorithm that continuously adapts to new tactics - dynamically identifying suspicious patterns in blockchain transactions. It has a universal cross-chain capability, and is designed around how compliance teams work, presenting results in a dashboard. No infrastructure changes are needed for installation.
It is relatively easy to obscure fraudulent or criminal activity by moving funds between blockchains, or dispersing them across many blockchains, in what are known as ‘cross-chain’ transactions. It is these transactions that pose the greatest difficulty for existing anti-money laundering systems.
SynapTrack was developed by University of Birmingham computer scientists Dr Pascal Berrang and PhD student Endong Liu, in collaboration with blockchain developer Nimiq. Dr Berrang’s research is in IT security and privacy on blockchain, artificial intelligence and machine learning. The subject of Endong Liu’s PhD is transaction tracing. Nimiq is supporting with blockchain-specific insights, knowledge of real-world constraints, and implementation.
For media information or interviews contact Ruth Ashton, University of Birmingham Enterprise, email: r.c.ashton@bham.ac.uk
The team behind SynapTrack is keen to hear from exchanges, financial regulators or law enforcement agencies who want to test the prototype in real-world conditions. Register interest at https://www.synaptrack.co.uk
About SynapTrack
SynapTrack is being developed in a collaboration between the University of Birmingham, UK, and blockchain developer Nimiq, in a project that brings together academic research and real-world blockchain experience. While the Birmingham team is exploring how to identify cross-chain activity patterns and workflows for blockchain investigators, Nimiq is supporting the research with blockchain-specific insights, knowledge of real-world constraints, and implementation.
About CyberASAP
CyberASAP (Cyber security Academic Startup Accelerator Programme), now in its ninth year supports the commercialisation of academic cyber security research through an 11-month series of workshops, skills training and industry engagement. CyberASAP Demo Day is the culmination of CyberASAP, a programme funded by the UK Department for Science Innovation and Technology (DSIT) and delivered by Innovate UK.
About Nimiq
Nimiq is an open-source blockchain project dedicated to making blockchain technologies simple, accessible, and practical to use. The Nimiq ecosystem includes the Nimiq blockchain and its native coin, NIM, plus apps and integration features. From the beginning, Nimiq has maintained a close relationship with academic and research communities. Drawing on peer-reviewed work, engaging with researchers, and valuing rigorous approaches to security, cryptography, and protocol design.
Known for implementing new technologies early and thoughtfully, Nimiq continually explores and adopts advancements across the blockchain stack. This focus on innovation is paired with a strong commitment to usability: Nimiq designs and builds blockchain products that are approachable for developers and intuitive for end users, without compromising on Self-Custody, its core properties or security. Follow Nimiq on LinkedIn and X.
About the University of Birmingham
The University of Birmingham is ranked amongst the world’s top 100 institutions, and its work brings people from across the world to Birmingham, including researchers and teachers and more than 6,500 international students from nearly 150 countries.
University of Birmingham Enterprise helps researchers turn their ideas into new services, products and enterprises that meet real-world needs. We also provide incubation, and support innovators and entrepreneurs with mentoring, advice, and training, manage the University’s Academic Consultancy Service, and University of Birmingham Enterprise Operating Divisions. Follow us on LinkedIn and X.
Associate Professor in Computer Science
Staff profile for Dr Pascal Berrang
