ASSET TRACING AND CRYPTOCURRENCY FORENSICS
Asset Tracing and Cryptocurrency Forensics are investigative techniques for monitoring financial transactions on the blockchain. They are employed to locate assets and track down criminals
The investigation and recovery procedure for victims of online fraud, theft, hacking, and extortion schemes includes the tracing of Bitcoin and other cryptocurrencies. Through civil lawsuits, criminal prosecutions, and regulatory enforcement measures, these investigations assist conflict settlement and monetary restitution
Digital Currency Reclaim undertakes cryptocurrency forensics investigations for legal firms, investors, exchanges, deFis, regulators, and law enforcement. We have a renowned Asset Tracing and recovery team comprising of Cryptocurrency Tracing Certified Examiner (CTCE) and Certified Fraud Investigators (CFE) who oversee the execution of the recovery procedure.
Can Bitcoin and Cryptocurrencies really be traced?
Cryptocurrencies are frequently perceived as being entirely anonymous. Bitcoin and other crypto transactions are publicly recorded on the Blockchain ledgers that only feature the user’s bitcoin address, which is a long string of letters and numbers, and do not include names, addresses, or other personally identifying information.
To cut through that wall of anonymity, law enforcement agencies, regulators, and financial investigators have created cutting-edge techniques. Cryptocurrency transactions can be de-anonymized under specific circumstances using blockchain intelligence tools and investigative tactics, such as an examination of frequent spend and address reuse, or applying the concept of blockchain intelligence firm Chainalysis. Cybercriminals have refined their money-laundering techniques, like layering, and embraced new privacy-enhancing technology in response to growing attention and surveillance. Markets for cryptocurrencies are seeing an increase in the cat-and-mouse game between criminals and investigators.
OUR APPROACH TO SOLVING CRYPTO FRAUD CASES
At DCR, we believe that intelligence-driven asset recovery yields successful outcomes. It is no longer as easy as requesting the return of stolen assets as modern cybercriminals are quite skilled at concealing their identities and their assets. Digital Currency Reclaim (DCR) allows our clients to level the playing field by identifying the true beneficial owners of the criminal scheme and locating recoverable assets.
DCR Organization specializes in financial asset recovery and devotes a significant portion of its resources to battling cryptocurrency fraud. We are equipped with an Asset Recovery Team comprising of renowned finance, legal and cybersecurity experts who know all the tricks and inner workings of fraudsters. With the help of our legal specialists, cyber forensic investigators, and years of experience in funds recovery, we can track and expose the fraud so you can exercise your rights and recover your money.
We are qualified to assist you in our capacities as a consultant, recovery organization, legal aid, or simply with support and information, regardless of whether you lost money while acting as a trader, shopper, or online user.
Want to recover your assets?
HOW DO WE WORK?
The Asset recovery Lifecycle usually requires a high level of professionalism and expertise, hence it is executed in stages to ensure due diligence until your assets are successfully recovered
Analysis: In order to detect the crypto scammers, we first thoroughly examine your encounter with the fraud, paying special attention to your interactions and conversation, in order to detect any potential loopholes or hints that could help identify the scammer or serve as a stepping stone for investigation.
Investigation: To gather evidence, we do online and database searches to look for similar offenses. This will give us knowledge of the scammer’s thought process, as they usually have a single behavioral pattern.
Social engineering: By posing as another victim and approaching the fraudsters directly, we are able to harvest information such as their ip address, geo-locations, identification, and typically everything else required launching into the full scope of recovery.
Funds Tracing: In order to reach the intended beneficiary of the scam, we trace the flow of money. Even the most sophisticated scam leaves a trace when it comes to financial transactions. In many instances, we are able to stop the scammer’s efforts to conceal their actions and lock some or all of the wallets containing the cryptocurrency that was either stolen or obtained through fraud. Even if we are unable to lock accounts, we can frequently locate the proof necessary to get the appropriate court order to remedy the situation.
Funds Recovery: Asset recovery is often a complex and time-consuming process, but it is essential for individuals and businesses that have suffered losses due to theft or fraud. With the combined efforts of the preceding stages, Digital Currency Reclaim has curated several methods, including the use of sophisticated technical tools to ensure the recovery of stolen assets.
Investigate the offender: After we have successfully secured hostage of the stolen funds from the fraudster’s custody, we locate and interrogate the offender. Following that, based on the best possible plan, we meet with the financial regulators and authorities to determine the best action to take.
Our Blockchain Forensics Experts specialize in tracking Bitcoin transactions, Ethereum, Ripple, Litecoin, Ether, and other cryptocurrencies. We use professional blockchain forensics tools to combine on-chain and off-chain analytics with investigative techniques to help you recover your money by tracing the transaction.
At Digital Currency Reclaim, our expertise in cryptocurrency tracing and fund recovery stems from our careful analysis of the blockchain, extensive experience identifying bad actors through reversed social engineering, and courtroom experience. In addition to our team of crypto investigators, we have open-source specialist, computer forensic experts, intelligence analysts, cyber security personnel, and forensic investigators on board.
WHAT KIND OF DATA IS HARVESTED?
Identification of the offender and the location of their cash are the primary objectives of cryptocurrency forensics and asset tracing, which are pursued through a number of fields of research and analysis:
- Attribution Data: Blockchain intelligence technologies gather and analyze ownership attribution data for numerous entities, which can then be used to de-anonymize blockchain addresses for the purpose of identifying criminals, and obtaining evidence that might come in handy during other investigations. These systems hardly ever reveal personally identifying information (PII) about specific cryptocurrency asset owners, but they might reveal connections to known fraud schemes or criminal organizations, as well as transactions with other relevant parties like exchanges and fiat off-ramps where illicit proceeds are turned into cash.
- Transaction Chart: This method tracks financial transfers to their final destinations by converting transactional data into maps and flowcharts that depict interactions between the subject and well-known exchanges and other entities. It is considerably simpler to identify patterns, including layering and peel chains, which are frequently utilized in money laundering, when they are visualized. Powerful systems that automate mapping and evidence gathering are used by experienced investigators. This method is more effective and efficient than open-source or blockchain search engines that need manual inspection of ledger entries.
- Cluster analysis: A cluster is a collection of cryptocurrency addresses under the same controller’s supervision. The amount of information available for de-anonymization and asset tracking can be greatly increased by shifting the focus of an inquiry from a single address to a bigger cluster. It is also possible to find out whether any linked addresses have a significant current value or UTXO using cluster analysis.
- Subpoena Targets: In order to verify a customer’s identification for new accounts, commercial cryptocurrency exchanges, decentralized finance (DeFi) businesses, and virtual asset service providers must adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. They become a very useful tool for de-anonymizing individuals who have used their services to purchase, trade, hold, or cash out cryptocurrencies as a result. Through civil subpoenas or criminal warrants, it may be possible to access the personally identifying information of registered owners of addresses and wallets, as well as their banking information.
- Present and Past values: Cryptocurrency addresses with high value serve as key markers for financial recovery. They could be suitable targets for garnishment during the execution of a civil judgment or for seizure warrants issued by prosecutors in criminal cases.
- Total Transactions: The quantity of cryptocurrency transactions may be an indication of the size and number of potential victims of a fraud scheme. When a criminal organization has damaged multiple people, complaints to law enforcement often receive more attention. Class action lawsuits in civil court may also be suitable for bigger schemes.
- Risk Profiling: Automated risk-profiling is carried out using sophisticated algorithms that track the activity of the target address(es) and find connections to well-known groups including exchanges, mixers, peer-to-peer exchanges, sanctioned parties, ransomware rings, and darkweb markets.
- IP Address: Privacy-invading metadata is amassed by blockchain surveillance systems, which operate networks of nodes that “listen” and “sniff” for Internet Protocol (IP) addresses connected to particular transactions. When available, IP addresses may reveal details about the subject’s whereabouts at the time of the transaction.
The technical competence of the perpetrators and the measures they attempt to hide their identity varies throughout cryptocurrency theft and fraud operations. The success of the investigation and dispute resolution processes is influenced by a number of variables, including the level of activity in other nations or offshore jurisdictions. A thorough methodology that combines blockchain forensics with additional, off-chain investigation is typically beneficial for complex fraud investigations.
Fraud investigators typically start by assessing the chronology of events and the plan in order to collect tangible proof of fraud and quantify the magnitude of financial losses. To find out how diverted money was used, relevant cryptocurrency transactions—including deposits at commercial exchanges—are tracked. The development of attribution information on account owners and the identification of groups of related addresses controlled by a single entity are done using forensic analysis and blockchain intelligence techniques. Digital forensics of email metadata, domain servers, and IP address geolocation may also be used in investigations.
To positively identify the perpetrators of bitcoin fraud schemes, further fact-finding and legal discovery methods, such as subpoenas in civil cases or warrants in criminal prosecutions, may be required. At DCR, our investigators support legal counsel logistically by screening suitable subpoena targets (such as KYC-compliant exchanges) and reviewing crypto ledgers, bank data and other information obtained through subpoena. It might be appropriate to find and speak with more victims for potential class members in class action cases.
Upon positively identifying the perpetrators, due diligence may be conducted in order to gather pertinent information about their backgrounds, including an examination of their criminal records, educational background, financial obligations, and any pattern of involvement with prior frauds. These studies could involve gathering and studying financial records, legal documents, and company documents. It might be required to coordinate these efforts with local sources abroad if the concept was devised outside of the United States.
Digital Currency Reclaim has a devoted team of Cyber Crime Investigators that assist victims of fraud in the preparation of official criminal charges and collaborate with law enforcement agencies in the U.S. and foreign jurisdictions to recover stolen assets and unravel fraud schemes.
Digital Currency Reclaim assists law firms, businesses, public agencies and investors with cryptocurrency tracing, fraud investigation, and due diligence. Every investigation is overseen by a Cryptocurrency Tracing Certified Examiner (CTCE) and Certified Fraud Examiner (CFE).
NOTICE!
Be aware that due to the expenses involved in conducting an Asset Recovery Operation, we only administer cases where losses accrued to an equivalent of 10,000 USD and above. Depending on the complexity of each case, we charge fees for our services and provide a contingency payment plan with a “No win - No fee” clause, whereby payment is made subsequently to the completion of our service.
DCR provides a satisfactory Financial Asset Recovery Service and devotes a large portion of its resources to battling cryptocurrency-related fraud.
