KISA [Korea Internet and Security Agency] is planning to develop an AI based solution for tracking back cryptocurrency transactions on the dark web in response to the Telegram Nth Room sexual ring case.
In line with the New Daily, the govt. has been working on the solutions since January, as authorities faced severe obstacles amid the investigation of the children porn case increasing within South Korea, where people could easily purchase access to videos with sexually explicit content containing minors.
Adding further KISA added that such software relies on machine-learning technology, which automatically traces within South Korean’s dark web that accepts payments in cryptocurrencies. The authority which will oversee the operations is the VASP [Virtual Asset Handling Office].
The govt agency will enter a pilot phase to check the software and running by 2022.
The considered ring’s mastermind, Cho Joo-bin, is presently under police custody, and is refusing to cooperate with the investigators. This suggests the work of the authorities has been hampered, especially since many of the transactions processed via the ring were mainly in Monero [XMR] to strengthen anonymity.
Authorities also are concerned about the rise in crypto-related dark web deals in the country, with a trading volume skyrocketing over 1.5% compared to the earlier figures in 2018.
Development Of Virtual Asset Fraud Tracking Technologies
In line with the figures disclosed by the agency, by 2023, 7.9 Bln won [around $6.5 Mln] – 6 Bln won [$ 4.9 Mln] in government contributions and 1,981 Bln won [around $1.64 Mln] of private money – are going to be invested within the development of virtual asset fraud tracking technologies.
Earlier on 2nd June, South Korean court ordered a freeze on all the crypto related wallets, securities deposits, and stocks accounts owned by Cho Joo-bin. The funds within the confiscated are suspected of clarifying the profits that the defendant would have obtained as the leader behind the Telegram Nth Room.