International law enforcement requests for crypto investigation data may take up to a year, so a speedy resolution is needed. In the meantime, gangs may move assets or launder money, knowing that detectives are lagging behind. A blockchain analytics firm that can help speed up the process will be the best solution. While a private company's data isn't public, it does help the government gather more information about the transactions made by its clients.
Forensic analysis of cryptocurrency addresses can provide evidence about the ownership of cryptocurrencies. Blockchain surveillance systems can listen to IP addresses associated with a particular transaction to determine its geographical location. The availability of such data helps law enforcement agencies identify targets to subpoena. Moreover, preliminary forensic analysis of a cryptocurrency address can reveal whether ownership attribution data and clustering analysis are available. Such analysis also provides context regarding the complexity of a criminal investigation and can give an estimate of time and resources required for further investigation.
A cryptocurrency investigation report is a key tool for proving a case against an illegal group or individual. The SEC should investigate such cases diligently. While investigating a crime, the SEC should avoid politicizing the investigation. This is to protect investors from being scammed. Further, if an investigation of a cryptocurrency scheme involves money laundering, the SEC should consider pursuing it through legal means. If the case proceeds to trial, the investigators should cooperate with local and federal law enforcement and pursue their goal of preventing the occurrence of a crime.
The SEC should be clear on how it will use information obtained by a crypto investigation. The SEC needs to clarify the procedures that are used to gather this information. Further, it should make clear whether the investigative efforts are a necessary step toward securing investor money. The SEC should ensure that all investigations are performed using world-class tools that are specifically designed for crypto. This is the most efficient way to protect the public from fraudulent activities.
In addition to data obtained through investigative tools, the SEC can conduct privacy-piercing metadata by examining data in cryptocurrency transaction databases. Such information can reveal the identity of the perpetrator and help law enforcement authorities. Additionally, investigators can conduct a full-scale search on the entire blockchain network to trace any artifacts related to the cryptocurrency. Those seeking information in this way should be vigilant about preventing financial crimes and avoiding fraudulent activities in crypto.
Fortunately, the SEC has a range of tools and technologies that will help them track down suspects in a crypto theft case. A blockchain surveillance system will listen to transactions and log IP addresses to determine the identities of the perpetrator. An IP address will also reveal their geographical location. As such, a blockchain investigation can be a powerful tool in exposing cryptocurrency fraud. In addition, it will help law enforcement to detect criminals.
