Authors: Yanan Gong, Kam Pui Chow, Siu Ming Yiu
DFRWS USA 2025 — “History in the Making” — Jubilee 25th Anniversary
Abstract
Cryptocurrency-related crimes are on the rise and have a wide-ranging impact across various areas. To effectively combat and prevent such crimes, cryptocurrency forensics, which relies on blockchain analysis, is essential. Despite advancements in Bitcoin de-anonymization techniques, several challenges persist. The absence of authentic data labels introduces uncertainty into de-anonymization results, especially in the context of address clustering. This issue is further compounded by the development of privacy-enhancing technologies that obscure address linkages, thus undermining the reliability of outcomes as forensic evidence. To address these limitations, this study focuses on Bitcoin blockchain analysis and the improvement of address clustering. Specifically, the work presents an enhanced simulation model designed to accurately simulate real Bitcoin transactions, offering a stable platform for evaluating address clustering algorithms that utilize transaction details, thereby facilitating the assessment of the admissibility of clustering results. Meanwhile, we introduce a new heuristic algorithm aimed at identifying one-time change addresses, with experimental results demonstrating that it achieves more precise clustering outcomes than existing heuristic methods. Furthermore, our blockchain analysis reveals overarching patterns and recent changes in the Bitcoin blockchain, particularly following the introduction of the BRC-20 token.