Case Study: StraitsX strengthens AML detection with Merkle Science behavior-based analytics

StraitsX cuts manual investigation time by 80% with Merkle Science

StraitsX, a leading provider of digital financial services, faced a challenge detecting coordinated money mule networks within its platform. These networks used multiple legitimate customer accounts to withdraw stablecoins to external wallets, which then converged into hidden consolidation addresses, creating regulatory and financial risk. To address this, StraitsX partnered with Merkle Science and its predictive blockchain risk and intelligence platform.

Merkle Science applied behavior-based analytics and network-level clustering to identify coordinated withdrawal patterns and trace fund convergence. Their solution identified over 250 previously unknown consolidation wallets, with over 90% assessed as likely linked to mule activity. This enabled StraitsX to integrate these high-risk destinations into transaction controls and achieve an approximately 80% reduction in manual investigation time.

StraitsX