Visible to the public A Practical De-mixing Algorithm for Bitcoin Mixing Services

TitleA Practical De-mixing Algorithm for Bitcoin Mixing Services
Publication TypeConference Paper
Year of Publication2018
AuthorsHong, Younggee, Kwon, Hyunsoo, Lee, Jihwan, Hur, Junbeom
Conference NameProceedings of the 2Nd ACM Workshop on Blockchains, Cryptocurrencies, and Contracts
Conference LocationNew York, NY, USA
ISBN Number978-1-4503-5758-6
Keywordsbitcoin, bitcoin security, blockchain analysis, helix, Human Behavior, mixing service, pubcrawl, Scalability
AbstractBitcoin mixing services improve anonymity by breaking the connection between Bitcoin addresses. In the darkweb environment, many illegal trades, such as in drugs or child pornography, avoid their transactions being traced by exploiting mixing services. Therefore, de-mixing algorithms are needed to identify illegal financial flows and to reduce criminal activity. Unfortunately, to the best of our knowledge, few studies on analyzing mixing services and de-anonymizing transactions have been proposed. In this paper, we conduct an in-depth analysis of real-world mixing services, and propose a de-mixing algorithm for Helix, one of the most widely used Bitcoin mixing services. The proposed algorithm de-anonymizes the relationship between the input and output addresses of mixing services by exploiting the static and dynamic parameters of mixing services. Our experiment showed that, we could identify the relationships between the input and output addresses of the Helix mixing service with a 99.14% accuracy rate.
Citation Keyhong_practical_2018