Data-Driven Methods to Analyse Illicit Payments Flows in Cross-Ledger DeFi Ecosystems (DeFiTrace)
Illegal payment flows are increasingly being obscured by Decentralized Finance (DeFi) services. These services represent a new financial paradigm based on crypto assets and offer novel financial services such as lending, investing, or exchanging crypto assets without the involvement of regulated institutions such as banks or crypto exchanges.
The aim of the DeFiTrace project is to research and develop new algorithmic solutions for the automated analysis of illegal payment flows in DeFi ecosystems that span multiple ledgers. The resulting methods and tools should enable a more efficient and effective tracking of incriminated funds. Members of the project consortium also researches legal and regulatory questions in the context of current regulatory developments (e.g., MiCA and DAC8), and it produces training material for continuous education in the field of crypto assets.