With the surge in cryptocurrency use, online scams targeting digital currencies like Bitcoin and USDT are rising. At OnlineJustice, blockchain analysis is one of our most powerful tools to help victims reclaim stolen funds. This process allows us to trace the scammer's digital trail, leading us closer to uncovering their identity.
What is Blockchain Analysis?
Blockchain is a public ledger where every cryptocurrency transaction is recorded. Think of it as an unchangeable list where all transactions are visible for anyone to see. However, while the transaction details are public, the identity behind them often remains anonymous.
Blockchain analysis is the method we use to research this transaction history, follow the path of the stolen funds, and pinpoint exactly where they’ve gone. This helps us track the flow of crypto and leads us to key exchanges where scammers typically convert cryptocurrency into traditional currency like US Dollars(fiat).
How Does Blockchain Analysis Help Us Catch Scammers?
Here’s how it works step-by-step:
Tracing the Path: Scammers may move funds through multiple wallets to hide their tracks. Blockchain analysis allows us to follow the flow, no matter how many times the funds change hands.
Locating the Exchange: Eventually, scammers will exchange the cryptocurrency for fiat (for example USD) through an exchange. By identifying which exchange they used, we can take the next crucial step in our research.
Obtaining KYC Information: Most cryptocurrency exchanges follow Know Your Customer (KYC) regulations, meaning they collect personal information when users register, such as a picture of ID, and a selfie. Once we find the exchange, our clients can then request the KYC details, giving them key information like the scammer’s name and bank details.
Building the Case: With the KYC data in hand, our clients can now identify the scammer and move forward with actions like freezing their accounts or working with law enforcement to pursue charges.
Why Blockchain Analysis is So Effective
The transparency of blockchain technology makes it a powerful tool in tracking fraud. Even though scammers try to obscure their actions, each step leaves a digital footprint. By following these footprints, we can get closer to unmasking their identity.
Moreover, the regulations that exchanges follow provide us with crucial data. KYC compliance forces scammers to leave traces of who they are, making it nearly impossible for them to remain anonymous once they interact with these platforms.
How Blockchain Analysis Protects You
At OnlineJustice, blockchain analysis is a cornerstone of our strategy for helping clients recover lost funds. It enables us to follow the flow of money, find out where it went, and identify the person or group behind the theft. This tool, paired with our cyber intelligence expertise, maximizes your chances of getting your funds back and taking meaningful action against the scammers.
How Blockchain Analysis Looks
