A practical de-mixing algorithm for bitcoin mixing services

Younggee Hong, Hyunsoo Kwon, Jihwan Lee, Junbeom Hur

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Citations (Scopus)

Abstract

Bitcoin 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.

Original languageEnglish
Title of host publicationBCC 2018 - Proceedings of the 2nd ACM Workshop on Blockchains, Cryptocurrencies, and Contracts, Co-located with ASIA CCS 2018
PublisherAssociation for Computing Machinery, Inc
Pages15-20
Number of pages6
ISBN (Electronic)9781450357586
DOIs
Publication statusPublished - 2018 May 22
Event2nd ACM Workshop on Blockchains, Cryptocurrencies, and Contracts, BCC 2018 - Incheon, Korea, Republic of
Duration: 2018 Jun 4 → …

Publication series

NameBCC 2018 - Proceedings of the 2nd ACM Workshop on Blockchains, Cryptocurrencies, and Contracts, Co-located with ASIA CCS 2018

Conference

Conference2nd ACM Workshop on Blockchains, Cryptocurrencies, and Contracts, BCC 2018
CountryKorea, Republic of
CityIncheon
Period18/6/4 → …

Keywords

  • Bitcoin
  • Blockchain analysis
  • Helix
  • Mixing service

ASJC Scopus subject areas

  • Software
  • Computer Science Applications
  • Information Systems
  • Computer Networks and Communications

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  • Cite this

    Hong, Y., Kwon, H., Lee, J., & Hur, J. (2018). A practical de-mixing algorithm for bitcoin mixing services. In BCC 2018 - Proceedings of the 2nd ACM Workshop on Blockchains, Cryptocurrencies, and Contracts, Co-located with ASIA CCS 2018 (pp. 15-20). (BCC 2018 - Proceedings of the 2nd ACM Workshop on Blockchains, Cryptocurrencies, and Contracts, Co-located with ASIA CCS 2018). Association for Computing Machinery, Inc. https://doi.org/10.1145/3205230.3205234