Blockchain Investigation
Cryptocurrency Forensics
Tracing stolen funds. Identifying wallet owners. Building court-admissible evidence from blockchain data.
Sherlock Forensics provides cryptocurrency forensic investigation including Bitcoin and Ethereum tracing, wallet clustering analysis, exchange subpoena support and DeFi protocol forensics. Court-admissible blockchain evidence for fraud investigations, asset recovery litigation and criminal proceedings. CISSP, ISSAP, ISSMP certified. Since 2006.
Cryptocurrency fraud losses exceeded $5.6 billion in 2023 according to the FBI's Internet Crime Complaint Center. The pseudonymous nature of blockchain transactions creates a false sense of anonymity for bad actors. Every Bitcoin transaction is permanently recorded on a public ledger. Every Ethereum smart contract interaction leaves an immutable trace. Forensic blockchain analysis transforms raw transaction data into actionable intelligence that identifies wallet owners, traces stolen funds through mixing services and produces evidence that withstands cross-examination. Sherlock Forensics brings nearly two decades of digital forensics methodology to cryptocurrency investigations, applying the same chain of custody discipline used in traditional computer forensics to blockchain evidence.
Investigation Services
Cryptocurrency Forensic Capabilities
Wallet Tracing and Clustering
Forensic analysis of blockchain transactions to identify related wallet addresses through clustering heuristics. We trace funds from source wallets through intermediate addresses to final destinations, identifying patterns that reveal common ownership. Our analysis covers Bitcoin UTXO-based clustering, Ethereum account mapping and cross-chain bridge tracking to build a complete picture of fund flows.
Exchange Subpoena Support
When forensic analysis identifies funds deposited at regulated cryptocurrency exchanges, we provide the technical evidence that legal counsel needs to draft targeted subpoenas. Our reports document the specific transaction hashes, wallet addresses and deposit amounts that link on-chain activity to exchange accounts, enabling counsel to obtain account holder identification through legal process.
Fraud Investigation
Investigation of cryptocurrency fraud schemes including investment scams, rug pulls, Ponzi structures and business email compromise involving cryptocurrency payments. We trace the flow of victim funds from initial payment through laundering layers to identify where assets can be frozen or recovered. Our findings support both civil litigation and criminal referrals.
Asset Recovery for Litigation
Supporting civil litigation by identifying cryptocurrency assets held by defendants or judgment debtors. Forensic blockchain analysis can reveal undisclosed cryptocurrency holdings, trace diverted marital assets in family law disputes and locate hidden funds in commercial litigation. Reports are prepared for Mareva injunction applications and asset disclosure proceedings.
Mixer and Tumbler Analysis
Cryptocurrency mixing services attempt to sever the link between sender and receiver by pooling funds from multiple users. Forensic analysis examines timing correlations, transaction amounts, fee structures and known mixer address databases to trace funds through obfuscation layers. While no analysis can guarantee results through every mixer, many services leave exploitable forensic artifacts.
DeFi and Smart Contract Forensics
Investigation of decentralized finance protocol exploits, flash loan attacks, smart contract vulnerabilities and token manipulation. We analyze on-chain interactions with DeFi protocols to trace exploited funds, identify attacker wallets and document the technical methodology used in the attack for court proceedings and insurance claims.
Methodology
How We Investigate
| Phase | Activity | Deliverable |
|---|---|---|
| 01 | Wallet and transaction identification | Initial address mapping |
| 02 | Clustering and attribution analysis | Wallet ownership report |
| 03 | Fund flow tracing through intermediaries | Transaction flow diagram |
| 04 | Exchange and service identification | Subpoena target list |
| 05 | Court-admissible report preparation | Expert forensic report |
Frequently Asked Questions
Cryptocurrency Forensics FAQs
- Can Bitcoin transactions be traced?
- Yes. Bitcoin uses a public blockchain where every transaction is permanently recorded. Forensic wallet clustering, address attribution and exchange cooperation allow investigators to trace funds from origin to destination. Even privacy-focused techniques like mixers leave forensic artifacts that trained examiners can analyze.
- How does cryptocurrency forensics support litigation?
- Sherlock Forensics produces court-admissible reports documenting the flow of cryptocurrency funds with full chain of custody. These reports support civil asset recovery, fraud investigations and criminal proceedings. Ryan Purita provides expert witness testimony explaining blockchain evidence to judges and juries.
- Can you trace cryptocurrency through mixers and tumblers?
- Mixer and tumbler services attempt to obscure transaction origins by pooling and redistributing funds. Forensic analysis examines timing correlations, amount patterns and known mixer addresses to trace funds through these obfuscation layers. Results depend on the specific mixer used and the volume of transactions involved.
- What cryptocurrencies can you investigate?
- We investigate Bitcoin, Ethereum, USDT (Tether), USDC and other EVM-compatible chains. We also analyze DeFi protocol interactions, NFT transactions and cross-chain bridge activity. The methodology adapts to the specific blockchain architecture involved in each case.
- How do exchange subpoenas work in cryptocurrency cases?
- When forensic analysis identifies funds flowing to a regulated exchange, legal counsel can issue subpoenas or court orders to obtain account holder identity information. Sherlock Forensics provides the technical evidence linking specific wallet addresses to exchange deposits, which counsel uses to draft targeted legal process.
Get Started
Trace the funds. Build the evidence.
Contact Sherlock Forensics to discuss your cryptocurrency investigation. We provide court-admissible blockchain analysis for litigation, fraud cases and asset recovery.
Start Your Cryptocurrency Investigation
Call to discuss your case. We handle Bitcoin tracing, wallet analysis, exchange subpoena support and court-admissible forensic reporting.
Call 604.229.1994- Phone
- 604.229.1994
- Headquarters
- Burnaby and Coquitlam, BC
- Certifications
- CISSP, ISSAP, ISSMP