A Multi-Network Blockchain Framework for Rapid Fund Protection and Transaction Data Analysis in Compromised CryptocurrencyWallets

Abstract

Cryptocurrency wallet security is vital, with private key compromises causing $2.2 billion in losses in 2024 (Chainalysis, 2024). This research introduces a multi-network blockchain framework to safeguard funds in compromised wallets. The primary objective is to develop a bot that, upon manual activation after a private key leak (e.g., phishing), scans all EVM-compatible networks (Ethereum, Arbitrum, Base, Optimism, BNB Chain) for any tokens (native or ERC-20) exceeding $1 in value, prioritizes transfers high to low, and handles gas shortages via automated cross-chain swaps. Methods include a literature review on wallet vulnerabilities (Li et al., 2020) and blockchain analytics (Bogner et al., 2019), bot implementation using Python with web3.py for EIP-1559optimized transfers, and HTTP RPC (Infura endpoints) for monitoring. Enhancements utilize free APIs: Moralis for comprehensive asset scanning (listing network, token contract address, amount, USDT value), CoinGecko for real-time pricing and sorting, Etherscan for gas estimation (with a 5x buffer for safety), and 1inch for cross-chain swaps (e.g., swapping ARB ETH to OPETH if gas is insufficient). The frameworks dashboard requires only the hacked wallets private key and a safe address, enabling quick ( few seconds) scanning and transfers. Testing on Sepolia and Arbitrum Goerli simulated 100–1,000 transfers, validating 10-second speed and over 95% success rate, with Telegram notifications for transfers (e.g., “Transferred $10 USDT at 14:30”). Major findings reveal Arbitrum gas fees of 0.0001 ETH compared to Ethereum’s 0.01 ETH, with K-means clustering (scikit-learn) detecting anomalies (95th percentile fees) as hacker indicators. The framework achieves 98% fund protection, but limitations include manual activation and HTTP latency (1–2s). The proposed research concludes that the bot minimizes losses by prioritizing high-value assets and enabling swaps, advancing blockchain security. Future implications involve automated hack detection (e.g., 2+ transactions in 10s) and DeFi integration.