How Forensic Tracing Works

Blockchain forensics is the process of tracing the movement of funds across a blockchain to identify the ultimate recipient and build evidence for legal action. This lesson explains the process our analysts follow.

Step 1: Transaction Mapping

Starting from your transaction hash, analysts map every subsequent hop the funds took — from wallet to wallet, across chains if necessary, tracking mixing attempts and exchange deposits.

Step 2: Clustering Analysis

Forensic tools (Chainalysis, CipherTrace, Elliptic) use algorithms to cluster wallets that are likely controlled by the same entity. A scammer using 10 wallets to obscure the trail often has all 10 linked by clustering analysis.

Step 3: Exchange Identification

When funds reach a centralised exchange (Binance, Coinbase, Kraken, etc.), the exchange address is identified from public attribution databases. This is where the pseudonymity ends — exchanges hold KYC (Know Your Customer) data on every account.

Step 4: Legal Request

With a forensic report identifying the exchange and wallet, law enforcement can submit a formal legal request to the exchange for account holder information. This is how scammers are identified and funds frozen.

What We Need From You

• The wallet address you sent funds to
• The transaction hash (TxID)
• The blockchain used (Bitcoin, Ethereum, USDT, etc.)
• The approximate date and time of the transaction