Lambda256 & Government Agency prevent crypto abuse cases

Press Release 2020-07-20

Lambda256, a subsidiary of Dunamu and providing a cloud based blockchain platform ‘Luniverse’, is slated to participate in the national research and development (R&D) project on cybercrime activity tracking technology such as illegal transactions of virtual assets as a joint research institute until December 31, 2023

Ministry of Science and ICT, IITP (Institute for Information & communication Technology Planning & evaluation), KISA (Korea Internet & Security Agency) push for Cyber-crime activity tracker R&D.

Joint Research of Supreme Prosecutors’ Office, Korean National Police University, Lambda 256, Chung-Nam National University, and NSHC.

The main purpose of the project is to prevent the exploitation of virtual assets in various crimes such as the recent ‘telegram nth room’ scandal while detecting cybercriminals early on using blockchain technologies

Also, the Ministry of Science and ICT, Information and Communication Planning and Evaluation Institute (IITP), and Korea Internet & Security Agency (KISA) will build and support an (machine learning) AI-based virtual asset fraud flow tracking platform. This will help virtual asset service providers such as exchanges comply with the law (Special Act taking effect on March 2021) regarding the financial transaction information and the anti-money laundering prevention on reporting and use.

Preventing Cybercrime through blockchain and virtual asset technology

The KISA Information Protection R&D Technology center on June 23rd that Supreme Prosecutors’ Office, Korean National Police University, Lambda256, Chung-Nam National University, and NSHC will be joining the research at an online press conference (Issue and talk) on the current status of Cyber-Crime R&D held in June 23rd.

Unlike general websites (WWW), there are more cases where virtual assets are abused for sex crimes or drug and firearm transactions that occur through the dark web that is accessed through an anonymization process, such as a specific browser. A blockchain technology service company started to develop technology together to prevent it.

“Social and economic damages are rapidly increasing as virtual assets are abused on the domestic dark web where roughly 15,000 people visited a day last year, said KISA Soon-Tai Park, a head of security threat response R&D team who leads the R&D. The research on identification and fraud tracking is still in its infancy, so we decided to develop a technology to detect and track fraudulent transactions that can be applied in practice”.

Anti-money laundering cooperation with virtual asset exchanges such as Upbit

Accordingly, joint research institutes such as the Prosecutors’ Office, Korean National Police University, Lambda 256, Chungnam National University, and NSHC will develop core element technologies related to cyber-crime activity information tracking systems such as fraudulent transactions through the initial phase of research until December.

Thereafter, at the commercialization phase, core functions and advancement will be applied to an exchange.

During this process, Lambda 256 analyzes the wallet address issuance system of virtual asset exchanges such as Upbit, Bithumb, CoinOne, Corbit, and Gofax, and tracks the flow of fraudulent transactions and technological demonstration.

“In 2023, we will move to the commercialization stage, such as the application of a virtual asset exchange flow tracking platform that is applied to virtual asset exchanges in 2023,” he said. “We will use domestic technology to help operators utilize cyber-crime detection solutions to prevent illegal money laundering”.