What is crypto tracing?
Crypto tracing involves recovering digital currency that is stolen or lost. For a victim, the process is very simple and very convenient because everything can be done online, including updating your government’s identity, and retrieving your lost funds. For a criminal, it’s a very complicated and technologically difficult process. They must hack the thieves, buy their digital currency on the dark web, and sell it back on the internet to the original owner, often with high commissions.
Understanding the Problem
This article is not intended to be a professional piece on how to recover cryptocurrency lost from a hack. However, it is important to understand why this process is so difficult, and will inform the proper methods we will be using in the recovery process.
Why go to a professional company?
A reputable escrow company promises to return your stolen funds in a fair and fastest way possible. If you’re not convinced, then you can always start with the training and certification they provide. By offering their services, the real-deal company makes sure to have the necessary know-how to investigate fraudsters.
The upside of hiring a professional company?
While some websites are posing as escrow services, do you really know who you’re getting involved with? You can get an idea about their credibility by looking at the ratings. Better yet, go through what others have to say.
Most importantly, never deal with an unknown company. If you’re at all curious, go to a site that provides a complete overview of the service and the escrow company.
How does crypto tracing work?
Crypto tracing works by creating an image of the transaction records of the fake sites involved in the scam, and using those records to connect similar patterns across the internet. The scam artists could be identified and their activities rendered traceable in such a way as to pinpoint and make links between them. It’s then a simple matter of checking out the bank accounts and online accounts of the fake firms and see what money’s been earned and where it’s been going. This could take a few hours to get the right details, however, the scam artists don’t need to wait very long for the attention of the authorities who are searching for them.
How long does it take for the process to be completed?
One of the first steps is to determine which platform the criminal runs their scheme on. It may have been on one of the major platforms, like ShapeShift, GDAX or Poloniex. These platforms are known for dealing with customers’ security. One of the major platforms, ShapeShift, was able to recover over $7 million in fraudulent funds within the first 3 months of being hacked. Although it was successful in recovering funds, it also provided thousands of customers with emotional damage caused by the crime.
If a platform refuses to give up your funds, the next step is to do research. Once it becomes more than obvious that a fraudster is operating on your platform, this can be tracked on several platforms, like Bitcoin Wisdom.