STELLAR-SENTINEL
"Real-time, explainable fraud detection for blockchain — no history needed, just smart behavior tracking."
Created on 24th April 2025
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STELLAR-SENTINEL
"Real-time, explainable fraud detection for blockchain — no history needed, just smart behavior tracking."
The problem STELLAR-SENTINEL solves
PROBLEM IT SOLVES:
No real-time fraud monitoring on public blockchains like Stellar — bad actors slip through until it’s too late.
Traditional tools rely on history or static rules — useless for cold wallets, new users, or changing crypto trends.
No explainability — security teams get black-box alerts with no context, slowing investigations and killing trust.
Live fraud alerts for crypto transactions — spot suspicious behavior as it happens.
WHAT IT CAN BE USED FOR:
Understand why something is flagged — with clear, explainable risk scores and patterns.
Simulate attacks using the built-in sandbox — test systems with micro-transfer storms, wallet hopping, etc.
Investigate smartly — from AML officers to journalists, track and trace shady activity fast.
Challenges we ran into
NO HISTORICAL DATA:
Building fraud detection without user history meant we couldn't use traditional ML methods.
Fix: We leaned into behavioral pattern recognition using transaction metadata and dynamic quantile thresholds (like spotting outliers in the 95th percentile)
Win: This made the system work even for cold wallets and new users — no data? Still detects.
STREAMING STELLAR DATA:
Stellar’s transaction data is public but not easily streamable or filterable in real-time.
Fix: We manually parsed the Horizon API outputs and built a polling-based setup to simulate live feeds.
Win: Gave us enough speed to test fraud logic on recent transactions without full-blown infra.
DYNAMIC THRESHOLDS>STATIC RULES:
Hardcoding things like “amount > 1000” doesn’t work across different wallet types or market conditions.
Fix: We implemented quantile-based thresholds (like 95th percentile behavior flags).
Win: Our system adapts to wallet behavior and market volatility — very important for crypto.
Tracks Applied (1)
Stellar Track
Stellar