Case Study: Tracing Funds Through a Mixing Service

Cryptocurrency fraud can involve sophisticated techniques designed to hide stolen funds. At Crypto Tracing Experts (CTE), we help victims and solicitor firms prove financial loss through detailed blockchain forensics. One recent case highlights how our expertise makes recovery possible, even when scammers use advanced anonymisation tools.

How Scammers Hide Cryptocurrency and Why Tracing Matters

This trace was completed as part of a proof of loss report for a client making a complaint to their bank. Our reports are used daily to help victims of investment, romance, and recovery scams demonstrate that they have suffered financial loss via cryptocurrency under the instructions of fraudulent actors.

In this case, the scammers used Tornado.Cash, a decentralised, non-custodial mixing service. These platforms allow users to send and receive cryptocurrency anonymously, masking the link between the sending and receiving addresses. They work by pooling and shuffling funds from multiple users and then using zero-knowledge proofs to enable anonymous withdrawals to new wallets.

The Challenge: Tracing Through Anonymisation Tools

The anonymity provided by mixing services makes tracing extremely difficult. In some cases, funds may pass through multiple wallets, across different blockchains, or through other obfuscation methods. Platforms like Tornado.Cash have even faced regulatory action—such as the OFAC sanctions in 2022 linked to North Korean hacking group Lazarus—highlighting their use in laundering stolen funds. Despite these challenges, CTE can follow the path of stolen cryptocurrency using advanced blockchain intelligence and forensic techniques.

Turning Data Into Evidence: Following Stolen Funds

Even when scammers attempt to hide their activity, our team can:

• Track cryptocurrency through multiple wallets and obfuscation layers
• Produce a legal-ready proof of loss report for banks and financial institutions
• Turn complex blockchain data into clear, actionable evidence

These reports not only demonstrate that a scam occurred but also support recovery efforts, helping banks and solicitors take the next steps.

Take the Next Step: Recovering Your Stolen Cryptocurrency

Cryptocurrency scams can feel impossible to resolve, but with expert analysis and the right legal support, recovery is often possible. If you’ve been affected by a crypto scam, contact the Crypto Tracing Experts (CTE) for a confidential consultation. Our team is ready to trace stolen funds, produce proof of loss reports, and support your journey toward recovery.