Can Crypto be Traced?

Tracing Crypto Criminals: Tips and Techniques to Protect Your Business’s Crypto Assets

As cryptocurrency gains more popularity and adoption, it has unfortunately also become a preferred method for criminals to carry out illegal activities. From money laundering to ransomware attacks, crypto criminals are becoming more sophisticated and harder to trace.

The decentralized nature of cryptocurrency adds a layer of complexity to investigating such crimes. Discover why hiring a cryptocurrency investigator is crucial for protecting your business’s crypto assets.

Whether you are investing in crypto, accepting crypto payments from clients, or utilizing blockchain for transactions, working with professionals is essential to safeguard against criminal activity. Companies must be aware of their obligations to prevent unintentional involvement in money laundering through foreign vendors or suppliers within complex international supply chains.

In this article, we will explore how investigators trace crypto criminals and why consulting a professional is essential in navigating this ever-changing landscape successfully.

What is cryptocurrency tracing?

Cryptocurrency tracing, also known as blockchain forensics, is the process of tracking and analyzing financial transactions on a blockchain.

It involves using specialized tools and techniques to decode the limited information provided by the ledger, revealing a visual trail of illicit funds. This investigative method is crucial in identifying perpetrators and locating their assets.
As the use of cryptocurrencies for illicit activities increases, the tools and technologies used for cryptocurrency tracing are also evolving. Today, cryptocurrency tracing experts use advanced software tools that are increasingly capable of removing the veil of anonymity associated with cryptocurrency transactions. These innovations are essential to support businesses investing in cryptocurrencies and protect them from potential criminal activity.

Can crypto be traced?

Contrary to popular belief, cryptocurrency is traceable with the right tools and expertise. Each user on a blockchain ledger is identified by a unique address, making it challenging to track down offenders on your own.

Additionally, cryptocurrency can be quickly converted into fiat money through unregulated exchange platforms, adding another layer of complexity to investigations. However, with the help of cyber fraud investigators equipped with expert skills and global resources, criminals hiding behind the veil of anonymity can be exposed.

It must be noted that the success of tracing varies depending on the complexity of the scam and the technical measures used to hide the perpetrator’s identity.

What kind of information can be tracked?

Cryptocurrency forensics and asset tracing involve several methods of analysis to identify perpetrators and locate their funds.

Attribution data is collected and analyzed using blockchain intelligence tools to de-anonymize blockchain addresses and identify known associations with criminal groups or fraud schemes. Transaction mapping converts transactional data into visual maps and flowcharts that show interactions between the subject and known exchanges or other entities. Cluster analysis involves expanding the focus of an investigation from one address to a larger cluster to increase the available evidence for de-anonymization and asset tracing.

Subpoena targets, including commercial cryptocurrency exchanges and decentralized finance firms, can provide valuable information for identifying and de-anonymizing subjects. Other information that can be tracked includes current and historical value, total transactions, risk profiling, and IP addresses.

Furthermore, automated risk-scoring using advanced algorithms allows investigators to trace activity and identify associations with known entities, including sanctioned parties and darknet markets. IP addresses, when available, can provide information on the subject’s geographical location at the time of the transaction.

Why do you need the support of experts to investigate crypto?

Investigating cryptocurrency transactions can be a complex and challenging process, given the decentralized nature of blockchain technology and the anonymity associated with cryptocurrency transactions. As a business, it is crucial to know who you are doing business with, and ignorance is not a defense in the eyes of the law. You have a responsibility to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations to ensure you don’t do business with criminal entities.

The landscape of crypto crime is continually evolving, and the tools and techniques used for cryptocurrency tracing must keep up with these changes. For this reason, it’s essential to seek the help of experts who have the experience and fully understand how to trace cryptocurrency. Professional cryptocurrency investigators are up-to-date with the latest developments and have access to advanced software tools to help trace illicit funds and identify perpetrators.

The dangers of cybercrime for businesses were illustrated by the recent collapse of the Bahamas-based cryptocurrency exchange FTX in November 2022. The liquidation of FTX, which was once the third-largest cryptocurrency exchange by volume, was caused by a liquidity crisis resulting from the company’s token, FTT. The incident highlights the significant financial risks associated with cryptocurrency and the importance of having the support of experts to help safeguard against such risks.

Key investigation techniques

Professional cryptocurrency investigators use several tools and techniques to trace crypto crimes. They are fundamental to the work of investigators in identifying the perpetrators and locating their funds.

In this section, we will discuss some of the primary tools and techniques used by professional investigators in cryptocurrency tracing.

Address Clustering

A technique that involves identifying and grouping together a set of cryptocurrency addresses controlled by the same person or entity. By doing this, investigators can expand the focus of their investigation from one address to a larger cluster of related addresses, which can provide valuable evidence for de-anonymization and asset tracing.

Graph Analysis

This technique involves converting transactional data into visual maps and flowcharts to show interactions between the subject and known exchanges or other entities. Visual mapping makes it much easier to recognize patterns, such as layering and peel chains, commonly used for money laundering.

Graph analysis can also determine if any linked addresses have a substantial current value or UTXO (unspent transaction output). UTXO means the output of a transaction that has yet to be used as an input in a subsequent transaction. It represents the amount of cryptocurrency associated with a particular address that has not been spent or transferred to another address.

Data Analysis

This refers to collecting and analyzing large amounts of data to identify patterns and trends. Investigators use powerful software tools to automate data collection and analysis, making this approach more efficient and effective than the manual review of ledger entries.

Heuristics

Here, experts use rules-based algorithms to identify suspicious patterns or behaviors. Heuristics are particularly useful in detecting money laundering and other types of financial fraud. Investigators use heuristics to identify patterns that may not be immediately obvious, such as repeated transfers of the same amount of cryptocurrency to multiple addresses.

Open Source Intelligence

In addition to rules-based algorithms and heuristics, open-source intelligence (OSINT) analysis plays a crucial role in identifying and tracking criminals involved in crypto crimes.

OSINT analytics provide law enforcement investigators with valuable insights into the web activity of individuals, financial institutions, businesses, and private sector organizations. OSINT also enables identifying and tagging illicit crypto addresses linked to drug dealers on the darknet or terror-related addresses.

How to identify the best cryptocurrency tracing specialists

To identify the most experienced cryptocurrency tracing specialists, look for those who use multiple powerful tools, provide expert reports, have a global presence with international teams and connections, respect client confidentiality, and have the capability to trace assets worldwide. It’s essential to research and choose a reputable and experienced investigator to ensure the best chance of success in tracing and recovering stolen assets.

Why hiring an expert cryptocurrency investigator is essential

Investigating cryptocurrency transactions can be complex and challenging. However, with the right tools, techniques, and expert support, cryptocurrency transactions can be traced, and criminals can be brought to justice. Professional investigators are at the forefront of the latest developments and have access to advanced software tools to help trace illicit funds and identify perpetrators.

Time is of the essence when it comes to tracing potential criminal crypto activity. That’s why it’s essential to seek the help of expert investigators to protect your business’s crypto assets. At The Owl, we have the skills and expertise to support you in evaluating and investigating potential security breaches or unusual financial activity. Contact us to discuss how we can support any potential crypto criminal investigation to stop criminals in their tracks and ensure compliance.

Eurasian Eagle Owl

The Feisty Rebel

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July 7, 2023

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Cryptocurrency

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GREAT HORNED OWL

THE CORPORATE WIZARD

The Great Horned Owl can take down birds and mammals even larger than itself making this owl a fearless predator. Due to the shapes of its wings and softly fringed feather edges, the Great Horned Owl is able to fly in near silence and take its prey by surprise. This Owl specializes in analyzing companies to discover potential frauds and wrongdoing. From simple cases of mismanagement to highly complex Ponzi schemes, the Great Horned focuses in uncovering the facts and providing solutions that stop, mitigate, and prevent these situations from re-occurring. It uses its experience to improve the company situation against competitors and illicit actors and discover weak points inside the companies resulting in value added in the millions of dollars for their shareholders and securing operations. Furthermore, this Owl is constantly analyzing upcoming legislation and current international regulations to assist companies in navigating complex regulatory landscapes pertaining to cryptocurrencies, emerging technologies, and financial crimes. Its ability to fly silently has led this Owl to numerous continents delivering services to Fortune 500 companies as well as Small and Medium Enterprises.

“Meet the Great Horned Owl, a majestic and powerful bird of wisdom, known for its piercing gaze and silent flight. As the Corporate Wizard, this owl has mastered the art of strategic planning, using its exceptional night vision to navigate the complexities of the business world.”

With its impressive wingspan and sharp talons, the Great Horned Owl is a force to be reckoned with, always ready to swoop in and snatch opportunities. Its ability to fly silently, unseen and unheard, is a testament to its cunning and stealth, allowing it to outmaneuver its competitors with ease.

As a symbol of wisdom, the Great Horned Owl is a master of foresight, always planning several moves ahead of the game. Its keen insight and sharp instincts make it an invaluable asset to any organization, guiding decision-making and ensuring success.

With its regal presence and commanding gaze, the Great Horned Owl is a true leader, inspiring confidence and respect from all who encounter it. Its nocturnal nature allows it to thrive in the shadows, where it can observe and analyze, always staying one step ahead of the competition.

As the Corporate Wizard, the Great Horned Owl is a powerful and formidable presence, feared and respected by all. Its wisdom, cunning, and strategic thinking make it an invaluable asset to any organization, and its silent flight allows it to operate with stealth and precision, always achieving its goals with ease.

BURROWING OWL

THE UNAPOLOGETIC HISTORIAN

Meet the burrowing owl, a small, sandy-colored owl with bright-yellow eyes, who has made a name for itself as the unapologetic historian of the grasslands and deserts. With its long legs and short tail, this owl is well-adapted to its underground lifestyle, where it spends most of its time hunting for insects and small animals.

As an unapologetic historian, this burrowing owl is known for its unwavering dedication to uncovering the truth about its past. It has spent countless hours digging through the dirt and dust of its burrows, uncovering ancient secrets and stories that have been hidden for centuries.

With its keen eyesight and sharp talons, this owl is a master of its domain, able to spot even the smallest details and piece together the puzzle of its history. Its unapologetic nature allows it to speak its mind and share its findings with others, making it a respected and sought-after historian among its peers.

Despite its small size, this burrowing owl is a force to be reckoned with, and its unapologetic approach to history has earned it a reputation as a fierce and fearless chronicler of the past.

“The Burrowing Owl is one of the most unique owls in terms of its preferred living space. While most owls prefer to live in trees, the Burrowing Owl lives underground often taking over burrows abandoned by badgers, prairie dogs, ground squirrels, and even tortoises.”

Its burrowing nature and innate curiosity has been the driving force in successfully uncovering hiding links that clients have used to win cases. This Owl specializes in deep dive external and internal investigations and applies its expertise to cater to clients’ specific needs. It utilizes global databases to identify connections and facts to build strong cases. This Owl’s specialty lies in the ancient particularly when it comes to art and antiquities trafficking. A fact-finder by nature, the Burrowing Owl works tirelessly to find the facts and rebuild timelines with as much historical precision as possible.

EURASIAN EAGLE OWL

THE FEISTY REBEL

Just like its name suggests, the Eurasian Eagle Owl – also sometimes called the Tiger Owl – is a fearless hunter. Its large, powerful feet and strong flight make it an effective hunter. This Owl is always looking for ways to exploit any system. By specializing in deep-dive investigations centered on detecting, preventing, and dismantling illicit activity both externally and internally, the Tiger Owl rapidly detects any vulnerabilities present and comes up with mitigating strategies to protect it. Furthermore, it is constantly seeking new ways to enhance operations, maintain supply chain transparency, and hunt illicit actors and their networks of fronts and shells. In its free time, this Owl is actively monitoring legislation, regulatory developments, and trends relating to client matters and criminal activity. Lastly, the Tiger Owl uses its sharp predatory instincts to actively fight against modern day slavery.

Meet the Eurasian Eagle Owl, a majestic and powerful bird of prey that has earned its reputation as a feisty rebel of the night. With its striking tawny plumage, mottled with darker blackish coloration, and piercing orange eyes, this owl is a force to be reckoned with.

A Bird of the Wild

The Eurasian Eagle Owl is a bird of the wild, thriving in a wide range of habitats across Eurasia, from mountainous and rocky areas to coniferous forests and steppes. It is a nomad, roaming freely and adapting to its surroundings with ease. Its ability to inhabit almost every climatic and environmental condition on the Eurasian continent, excluding the greatest extremities, is a testament to its resilience and determination.

A Fighter for Survival

Despite its impressive size and powerful talons, the Eurasian Eagle Owl faces numerous threats to its survival. Electrocution, collision with traffic, and shooting are the main causes of death, and conservation efforts are necessary to protect this magnificent bird. However, the Eurasian Eagle Owl is a fighter, and with proper insulation of electric wires and pylons, it can continue to thrive in its natural habitat.

A Symbol of Freedom

The Eurasian Eagle Owl is a symbol of freedom and rebellion, refusing to be confined to a specific habitat or lifestyle. It is a bird that embodies the spirit of adventure and independence, inspiring those who encounter it to be bold and fearless. Its striking appearance and powerful presence make it a formidable sight, and its reputation as a feisty rebel is well-deserved.

A Bird of Mystery

Despite its impressive size and striking appearance, the Eurasian Eagle Owl remains a bird of mystery. Its habits and behavior are not fully understood, and its nocturnal nature makes it elusive and difficult to study. However, its reputation as a feisty rebel has captured the imagination of many, and its enigmatic nature only adds to its allure.

In conclusion, the Eurasian Eagle Owl is a true feisty rebel of the night, a bird that embodies the spirit of adventure, independence, and freedom. Its striking appearance, powerful presence, and mysterious nature make it a bird that is both fascinating and formidable, and its reputation as a rebel is well-deserved.

LONG-EARED OWL

THE DATA GURU

Meet the Long-Eared Owl, a master of the night skies and a virtuoso of data analysis. With its striking ear tufts and piercing gaze, this owl is a force to be reckoned with in the world of data science. As a Data Guru, the Long-Eared Owl has honed its skills in the art of extracting insights from the vast expanse of the night, using its acute hearing and exceptional vision to track down even the most elusive prey.

With a keen eye for detail and a talent for pattern recognition, the Long-Eared Owl is able to piece together seemingly disparate data points to reveal hidden patterns and trends. Its ability to analyze complex systems and identify key relationships has earned it a reputation as a trusted advisor among its fellow owls.

Whether swooping through the darkness or perched atop a tree, the Long-Eared Owl is a symbol of wisdom, insight, and quiet power. Its data-driven approach to problem-solving has inspired a new generation of owls to follow in its footsteps, and its legacy as a Data Guru will be remembered for generations to come.

NORTHERN WHITE-FACED OWL

THE METHODICAL GENTLEMAN

Meet the Northern White-Faced Owl, a nocturnal bird of elegance and refinement. With its soft grey plumage, darker streaks, and vermiculations, this owl exudes a sense of sophistication. Its prominent ear-tufts and striking white face, surrounded by black, make it a striking sight. The Northern White-Faced Owl is a methodical gentleman, spending its days in its cavity, and hunting at night among scrubs, bushes, woodlands, and savannahs.

This owl is a master of stealth, using its acute hearing and exceptional night vision to pinpoint its prey. Its diet consists of insects, small birds, rodents, and small mammals, which it catches with precision and finesse. The Northern White-Faced Owl is a social bird, often roosting in pairs or with other owls, and is known to adapt to urban environments, sleeping in holes in buildings.

With its striking appearance and methodical nature, the Northern White-Faced Owl is a true gentleman of the night, a true master of its domain.

NORTHERN HAWK OWL

THE MILITARY CADET

As a cadet in the avian military, the Northern Hawk Owl is a master of stealth and strategy. With its striking hawk-like appearance and piercing yellow eyes, this owl is a formidable force to be reckoned with. Its long, tapered tail and broad head allow it to soar through the skies with ease, scanning the landscape for its next target. Whether patrolling the treetops or swooping down for a swift attack, the Northern Hawk Owl is a force to be reckoned with.

Tactical Training and Expertise

As a cadet, the Northern Hawk Owl has undergone rigorous training in the art of hunting and warfare. Its exceptional hearing and exceptional vision allow it to detect even the slightest movements, making it a master of surprise attacks. Its powerful talons and sharp beak make quick work of its prey, and its ability to fly silently allows it to sneak up on its enemies undetected. Whether facing off against a rival owl or a cunning rodent, the Northern Hawk Owl is always prepared to defend its territory and its fellow cadets.

Leadership and Loyalty

As a respected member of the avian military, the Northern Hawk Owl is a natural leader and a loyal companion. Its strong sense of duty and honor drives it to protect its fellow cadets and defend its territory at all costs. Whether leading a squadron of owls into battle or providing support to a fellow cadet in need, the Northern Hawk Owl is a true hero of the skies. Its unwavering dedication to its comrades and its unshakeable confidence in its abilities make it a shining example of what it means to be a true military cadet.

BARN OWL

THE VERBAL WARRIOR

Meet the Barn Owl, a nocturnal warrior with a voice that can pierce the darkness. With a sharp tongue and a fierce determination, this owl is not to be underestimated. As a master of the night, the Barn Owl uses its powerful vocalizations to strike fear into the hearts of its enemies, much like a warrior would brandish a sword.

With its striking white and golden feathers, the Barn Owl is a majestic sight to behold. Its large, round head and forward-facing eyes are a testament to its sharp instincts and keen senses. But it’s not just its physical appearance that sets this owl apart – it’s its unwavering bravery and unrelenting spirit.

As a verbal warrior, the Barn Owl is a formidable opponent, using its hooting cries to demoralize its foes and rally its allies. Its haunting calls echo through the night, a reminder of its presence and its unyielding determination. Whether in battle or in flight, the Barn Owl is a force to be reckoned with, a true champion of the night.

The Barn Owl is the most widely distributed species of owl in the world and one of the most widespread of all species of birds! Like most owls, The Barn Owl is nocturnal, relying on its acute sense of hearing when hunting. The Barn Owl’s extensive experience allows her to be seen even during the day hunting across various industries as she relocates her efforts from one roosting site to another. The Barn Owl can target its prey and dive to the ground, bringing solutions to any roosting site. The Barn Owl’s acute hearing allows her to provide the right solutions based on your needs and the scope of your roosting site. When disturbed at its roosting site, The Barn Owl lowers its head, spreads her wings, and takes every “No” as a “Maybe Later”!