In addition to analyzing transaction histories, Bitcoin tracing can also be used to track criminals. Although government officials often use the “anonymity” of transactions in the digital currency to discourage users from using it, this is a fiction. The truth is, law enforcement can easily trace the transactions that use Bitcoin. There are several methods of doing this, and they vary according to the type of transaction. Here are three common techniques:
First, cryptocurrency forensics is the practice of tracking financial transactions using blockchain. This information can be used to trace the perpetrators, recover assets, and even file civil lawsuits. Hudson Intelligence, a global investigative firm, conducts these investigations on behalf of exchanges, law firms, and investors. In many cases, we collaborate with Certified Fraud Examiners to provide detailed and accurate evidence. Besides conducting forensics, we also offer digital asset tracing to clients.
Another approach to bitcoin tracing is to use forensic techniques. Though it may not be possible to trace a bitcoin wallet per se, a person can trace a Bitcoin address to a certain exchange or point of intersection. Whether the asset is held in a US bank or exchange, tracing is possible. It is not a difficult task, but it requires technical skills. So what are the steps to do a bitcoin forensics investigation?