Startup Uses Wasp-Inspired Tech to Track Crypto Crime

Hyderabad: Taking inspiration from a wasp, which can see clearly even at night, Hornet, a Kolkata and Hyderabad based startup, is helping law enforcement agencies from Telangana and other states track and crack down on cross-border transactions related to drugs, terror financing, scams and money laundering.The startup, founded in 2023, has developed a software that can trace and analyse cryptocurrency transactions, enabling law enforcement agencies to identify suspicious activities and criminal operations."Our proprietary algorithms can extract all details regarding wallet addresses," said Subhrojyoti Mondal, co-founder and COO, Hornet, adding his team of 11 people has already helped agencies identify an individual involved in terror financing.The startup is now collaborating with multiple agencies, including the Enforcement Directorate, Cyberabad Police, and police departments from West Bengal and Andhra Pradesh.Hornet's Hyderabad-based co-founder & CMO Shreyan Gupta said their software lifts the veil on anonymous crypto transactions by distinguishing between private wallets and entity-linked wallets."While private wallets are harder to trace, we can track transactions when they interface with crypto exchanges or P2P platforms, linking them to real-world entities through bank KYC data." P2P, or peer-to-peer platforms, allow users to buy and sell crypto for fiat currency directly with other users.Meanwhile the software employs sophisticated tracking methods depending on the nature of the crime. "For investment fraud, we trace transactions forward to follow the money trail. In cases of terror financing or drugs, we work backward," Gupta elaborated.The platform's capabilities include graph-based transaction flow analysis, dark web monitoring without direct access, and automated investigation features that can identify the shortest transaction path to suspected target entities. It can also conduct risk assessments on wallets to detect fraudulent activities."Our system uses interactive graphs to trace the flow of crypto assets between wallets, and can also automatically flag addresses found on the dark web," added Gupta.