The cryptocurrency business is expanding at a high rate, resulting in several crypto crimes. These crimes are prevented by the enforcement provided by blockchain forensics, creating a safer environment.
The confiscation of $3.6 billion BTC in the case of Bitfinex by the Department of Justice of the U.S. in 2016 has the potential elements of a blockbuster Hollywood movie. However, this exciting theft was caught by several agencies, investigators, and the National Cryptocurrency Enforcement Team. The Feds caught another renowned Colonial Pipeline Ransome case.
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Thus, as per the reports of Chainanalysis cryptocrime in 2022, $3.5 billion has been seized in the investigation of non-tax reports by the IRS.
Blockchain Forensics, The Fundamental Pillar of The Forensic Domain
Few countries have leveled up their blockchain forensics by improving mixers, structuring, and tumblers. In addition to this, the officials make sure that the entire BTC is safely preserved during a pending case. All the confiscated crypto assets are auctioned, and the remaining are deposited in government accounts. However, the victims are adequately restored to build trust in the judicial system. Most of the crimes are being caught because of the KYC policy and other online forensics technologies, like collecting evidence and data from confiscated computers and phones.
Moreover, some private companies currently supply tools like artificial intelligence techniques, identifying tainted wallets, providing risk scores and many more for more effective blockchain forensics. There must also be international cooperation of agencies like the FATF, which make rules and regulations to help prosecute money laundering cases. Though there is a good reputation for blockchain forensics, however, in reality, a specialist can be found with extreme difficulty. More than 50 countries have partially or banned cryptocurrencies to avoid such a complex situation.
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