Nothing Special   »   [go: up one dir, main page]

skip to main content
10.1145/3605098.3636060acmconferencesArticle/Chapter ViewAbstractPublication PagessacConference Proceedingsconference-collections
research-article
Open access

Explainable Ponzi Schemes Detection on Ethereum

Published: 21 May 2024 Publication History

Abstract

Blockchain technology has been successfully exploited for deploying new economic applications. However, it has started arousing the interest of malicious actors who deliver scams to deceive honest users and to gain economic advantages. Ponzi schemes are one of the most common scams. Here, we present a classifier for detecting smart Ponzi contracts on Ethereum, which can be used as the backbone for developing detection tools. First, we release a labelled data set with 4422 unique real-world smart contracts to address the problem of the unavailability of labelled data. Then, we show that our classifier outperforms the ones proposed in the literature when considering the AUC as a metric. Finally, we identify a small and effective set of features that ensures a good classification quality and investigate their impacts on the classification using eXplainable AI techniques.

References

[1]
Massimo Bartoletti, Salvatore Carta, Tiziana Cimoli, and Roberto Saia. 2020. Dissecting Ponzi schemes on Ethereum: Identification, analysis, and impact. Future Gener. Comput. Syst. 102 (2020), 259--277.
[2]
Massimo Bartoletti, Stefano Lande, Andrea Loddo, Livio Pompianu, and Sergio Serusi. 2021. Cryptocurrency Scams: Analysis and Perspectives. IEEE Access 9 (2021), 148353--148373.
[3]
Massimo Bartoletti, Barbara Pes, and Sergio Serusi. 2018. Data Mining for Detecting Bitcoin Ponzi Schemes. In Crypto Valley Conference on Blockchain Technology. IEEE, 75--84.
[4]
Leo Breiman. 2001. Random forests. Machine learning 45, 1 (2001), 5--32.
[5]
Weimin Chen, Xinran Li, Yuting Sui, Ningyu He, Haoyu Wang, Lei Wu, and Xiapu Luo. 2021. SADPonzi: Detecting and Characterizing Ponzi Schemes in Ethereum Smart Contracts. Proc. ACM Meas. Anal. Comput. Syst. 5, 2, Article 26 (2021), 30 pages.
[6]
Weili Chen, Zibin Zheng, Edith C.-H. Ngai, Peilin Zheng, and Yuren Zhou. 2019. Exploiting Blockchain Data to Detect Smart Ponzi Schemes on Ethereum. IEEE Access 7 (2019), 37575--37586.
[7]
Shuhui Fan, Shaojing Fu, Haoran Xu, and Chengzhang Zhu. 2020. Expose Your Mask: Smart Ponzi Schemes Detection on Blockchain. In International Joint Conference on Neural Networks (IJCNN). 1--7.
[8]
Giacomo Ibba, Giuseppe Antonio Pierro, and Marco Di Francesco. 2021. Evaluating Machine-Learning Techniques for Detecting Smart Ponzi Schemes. In 2021 IEEE/ACM 4th International Workshop on Emerging Trends in Software Engineering for Blockchain (WETSEB). 34--40.
[9]
Guolin Ke, Qi Meng, Thomas Finley, Taifeng Wang, Wei Chen, Weidong Ma, Qiwei Ye, and Tie-Yan Liu. 2017. Lightgbm: A highly efficient gradient boosting decision tree. Advances in neural information processing systems 30 (2017).
[10]
Xiao Fan Liu, Xin-Jian Jiang, Si-Hao Liu, and Chi Kong Tse. 2021. Knowledge Discovery in Cryptocurrency Transactions: A Survey. IEEE Access 9 (2021), 37229--37254.
[11]
Yincheng Lou, Yanmei Zhang, and Shiping Chen. 2020. Ponzi Contracts Detection Based on Improved Convolutional Neural Network. In 2020 IEEE International Conference on Services Computing (SCC). 353--360.
[12]
Quinn McNemar. 1947. Note on the sampling error of the difference between correlated proportions or percentages. Psychometrika 12, 2 (1947), 153--157.
[13]
Tyler Moore. 2013. The promise and perils of digital currencies. International Journal of Critical Infrastructure Protection 6, 3 (2013), 147--149.
[14]
Satoshi Nakamoto. 2008. Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf.
[15]
E. Napoletano. 2021. Decentralized Finance Is Building A New Financial System. https://www.nasdaq.com/articles/decentralized-finance-is-building-a-new-financial-system-2021-04-02. (last access 2022).
[16]
J. Ross Quinlan. 1986. Induction of decision trees. Machine learning 1, 1 (1986), 81--106.
[17]
Securities and Exchange Commission. 2019. SEC enforcement actions against Ponzi. https://www.sec.gov/spotlight/enf-actions-ponzi.shtml.
[18]
SHAP 2023. SHAP documentation. https://shap.readthedocs.io/en/latest/index.html.
[19]
Arianna Trozze, Josh Kamps, Eray Arda Akartuna, Florian J Hetzel, Bennett Kleinberg, Toby Davies, and Shane D Johnson. 2022. Cryptocurrencies and future financial crime. Crime Science 11, 1 (2022), 1--35.
[20]
Marie Vasek and Tyler Moore. 2015. There's No Free Lunch, Even Using Bitcoin: Tracking the Popularity and Profits of Virtual Currency Scams. In Financial Cryptography and Data Security, Rainer Böhme and Tatsuaki Okamoto (Eds.). Springer, 44--61.
[21]
Lei Wang, Hao Cheng, Zibin Zheng, Aijun Yang, and Xiaohu Zhu. 2021. Ponzi scheme detection via oversampling-based Long Short-Term Memory for smart contracts. Knowledge-Based Systems 228 (2021), 107312.

Cited By

View all
  • (2024)Semantic Sleuth: Identifying Ponzi Contracts via Large Language ModelsProceedings of the 39th IEEE/ACM International Conference on Automated Software Engineering10.1145/3691620.3695055(582-593)Online publication date: 27-Oct-2024
  • (2024)Detecting Financial Bots on the Ethereum BlockchainCompanion Proceedings of the ACM on Web Conference 202410.1145/3589335.3651959(1742-1751)Online publication date: 13-May-2024

Recommendations

Comments

Please enable JavaScript to view thecomments powered by Disqus.

Information & Contributors

Information

Published In

cover image ACM Conferences
SAC '24: Proceedings of the 39th ACM/SIGAPP Symposium on Applied Computing
April 2024
1898 pages
ISBN:9798400702433
DOI:10.1145/3605098
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike International 4.0 License.

Sponsors

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 21 May 2024

Check for updates

Author Tags

  1. applied machine learning
  2. blockchain
  3. security

Qualifiers

  • Research-article

Funding Sources

  • European Union - NextGenerationEU

Conference

SAC '24
Sponsor:

Acceptance Rates

Overall Acceptance Rate 1,650 of 6,669 submissions, 25%

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • Downloads (Last 12 months)148
  • Downloads (Last 6 weeks)32
Reflects downloads up to 20 Nov 2024

Other Metrics

Citations

Cited By

View all
  • (2024)Semantic Sleuth: Identifying Ponzi Contracts via Large Language ModelsProceedings of the 39th IEEE/ACM International Conference on Automated Software Engineering10.1145/3691620.3695055(582-593)Online publication date: 27-Oct-2024
  • (2024)Detecting Financial Bots on the Ethereum BlockchainCompanion Proceedings of the ACM on Web Conference 202410.1145/3589335.3651959(1742-1751)Online publication date: 13-May-2024

View Options

View options

PDF

View or Download as a PDF file.

PDF

eReader

View online with eReader.

eReader

Login options

Media

Figures

Other

Tables

Share

Share

Share this Publication link

Share on social media