Most cryptocurrencies operate on the blockchain, allowing digital asset transfers between parties, resulting in quicker and more efficient transactions. However, the cross-border, pseudonymous, and decentralized nature of blockchain technology presents opportunities and challenges, and even hazards, such as illicit finance.
The Trump administration has prioritized their interest in digital assets and have fostered initiatives such as the Strategic Bitcoin Reserve and US Digital Asset Stockpile, treating Bitcoin and other cryptocurrencies as key financial assets and increasing their role in economic policy. Enhanced blockchain analytics have become more crucial to prevent financial crimes including money laundering, sanctions evasion, and certain dark web transactions.
How blockchain analytics identify financial crimes
The following flowchart illustrates the lifecycle of a blockchain analytics case:
The investigative analytics experts within the Risk, Investigations & Analytics practice support legal teams during intensive financial crimes investigations by connecting suspicious wallets, tracing complex transaction patterns across diverse blockchain instruments, and uncovering hidden movements of funds.
