Enhancing Cryptocurrency Security: Leveraging Embeddings and Large Language Models for Creating Cryptocurrency Security Expert Systems

In recent years, the rapid growth of cryptocurrency markets has highlighted the urgent need for advanced security solutions capable of addressing a spectrum of unique threats, from phishing and wallet hacks to complex blockchain vulnerabilities. This paper presents a comprehensive approach to fortifying cryptocurrency systems by harnessing the structural symmetry inherent in transactional patterns. By leveraging local large language models (LLMs), embeddings, and vector databases, we develop an intelligent and scalable security expert system that exploits symmetry-based anomaly detection to enhance threat identification. Cryptocurrency networks face increasing threats from sophisticated attacks that often exploit asymmetric vulnerabilities. To counteract these risks, we propose a novel security expert system that integrates symmetry-aware analysis through LLMs and advanced embedding techniques. Our system efficiently captures symmetrical transaction patterns, enabling robust detection of anomalies and threats while preserving structural integrity. By integrating a modular framework with LangChain and a vector database (Chroma DB), we achieve improved accuracy, recall, and precision by leveraging the symmetry of transaction distributions and behavioral patterns. This work sets a new benchmark for LLM-driven cybersecurity solutions, offering a scalable and adaptive approach to reinforcing the security symmetry in cryptocurrency systems. The proposed expert system was evaluated using a benchmark dataset of cryptocurrency transactions, including real-world threat scenarios involving phishing, fraudulent transactions, and blockchain anomalies. The system achieved an accuracy of 92%, a precision of 89%, and a recall of 93%, demonstrating a 10% improvement over existing security frameworks. Compared to traditional rule-based and machine learning-based detection methods, our approach significantly enhances real-time threat detection while reducing false positives. The integration of LLMs with embeddings and vector retrieval enables more efficient contextual anomaly detection, setting a new benchmark for AI-driven security solutions in the cryptocurrency domain.