The objective of cryptocurrency tracing is to locate stolen assets and identify the individuals responsible for their misappropriation. Despite the anonymity inherent in blockchain transactions, the wallet address utilized by the perpetrator to liquidate funds remains traceable.

To uncover this critical information essential for recovering from crypto scams, the investigators employ specialized tracing software to track the movement of funds across a complex network of online transactions. Throughout this investigative journey, they diligently identify suspicious patterns, navigate through deceptive maneuvers, and unveil significant connections to illicit activities. This meticulous process necessitates substantial time, resources, and expertise.

The tools utilized by cryptocurrency tracing experts continually advance in capability, transforming the limited data provided by the ledger into a coherent visual trail of illicit funds. These tools are increasingly adept at identifying the individuals associated with transactions.

Moreover, cryptocurrency tracing and asset recovery specialists possess the ability to collaborate with local law enforcement agencies to freeze and subsequently retrieve funds. This collaboration is pivotal in combating various crimes including online fraud, hacking, theft, phishing schemes, and extortion.

LegalByte conducts cryptocurrency forensics investigations for law firms, investors, exchanges, regulators and law enforcement. Every investigation is led by a Cryptocurrency Tracing Certified Examiner (CTCE) and Certified Compliance Professional in Cryptocurrency Financial Crimes (CCPC).

What type of information can be traced?

The data uncovered through cryptocurrency forensics and asset tracing encompasses several critical areas of analysis and investigation:

• Ownership Attribution: Blockchain intelligence tools gather and analyze ownership attribution data, aiding in the identification of blockchain addresses associated with criminal activity. While they may not directly reveal personal information, these tools can identify connections to criminal groups or fraudulent schemes, as well as transactions involving relevant entities like exchanges where criminal proceeds are converted into cash.
• Transaction Visualization: Transactional data is translated into visual maps and flowcharts, illustrating interactions between entities and exchanges. This visual representation facilitates pattern recognition, including common money laundering techniques. Advanced tools streamline mapping and evidence collection, enhancing efficiency compared to manual review.
• Identifying Address Clusters: Clusters represent groups of cryptocurrency addresses controlled by the same user or group. By identifying behavioral and other patterns in transactions, investigators can expand the scope of their efforts to address clusters. Expanding investigations to include larger clusters can yield valuable evidence for identifying individuals and tracing assets.
• Total address values: Cryptocurrency addresses holding significant value serve as crucial indicators for financial recovery efforts. They may be subject to seizure warrants or garnishment during civil judgment enforcement.
• Transaction Volume: The volume of cryptocurrency transactions provides insight into the scale of fraud schemes and the number of victims affected. Larger schemes attract more attention from law enforcement and may lead to civil suits.
• Automated Risk Profiling: Automated algorithms conduct risk scoring by tracing the activity of target addresses and identifying associations with known entities such as terrorists, mixers, and sanctioned parties.
• IP Address Tracking: Blockchain surveillance systems gather metadata, including IP addresses associated with specific transactions. This information may provide geographical details about the subject’s location at the time of the transaction.

What happens once the tracing process has been completed?

After locating the wallet address(es) involved, the next step is to determine the owner. Cryptocurrency exchanges and virtual asset service providers adhering to Know Your Customer and Anti-Money Laundering regulations require customer identity verification. Exchanges are prime sources for investigators due to the wealth of data they accumulate on users.

While certain exchanges may cooperate with our investigators and disclose the identification of the wallet holder upon request, many require such inquiries to be made directly by law enforcement.

With the necessary subpoenas, investigators can pierce the veil of anonymity surrounding suspicious transactions they are tracking. Utilizing information from exchanges, investigators may uncover crucial data and bank details linked to criminal activity. Through collaboration with authorities, they can then freeze accounts, facilitating the eventual recovery of illicit funds.

What do I need to do when I have been scammed?

LegalByte’s certified team of crypto investigation and blockchain forensics experts specialize in leveraging cutting-edge blockchain intelligence tools to uncover fraud, cybercrimes, and stolen digital assets. Our mission is to enhance transparency in transactions, ensuring justice and asset protection for our clients. Through our advanced forensic technologies and seasoned experts in blockchain analytics, we can trace transactions, unmask threat actors, and recover lost digital assets effectively.

Our comprehensive services include tracking and recovering stolen cryptocurrency, exposing investment fraud, identifying cybercriminals, and collaborating with law enforcement and exchange partners for optimal asset recovery.

If you’ve been a victim of cryptocurrency scams or theft, LegalByte is dedicated to reclaiming your assets and holding offenders accountable. We also assist in formal criminal complaints and liaising with law enforcement agencies both domestically and internationally.

Please don’t hesitate to contact us via email at contact@legalbyte.io and provide a thorough description of your issue.