Investigation

As a trader, I have noticed that there are certain questions that we all ask ourselves when entering this world. The search for the best trading strategy is a constant dilemma; we all want to discover that foolproof method that will ensure us profits. But how can we manage risk properly? It is essential to protect our capital and avoid losses that can be devastating.
One of the most common questions is how much capital do we really need to get started. I have learned that you don't always need a large sum, but you do need good planning. I have also found myself on the hunt for reliable trading platforms, because choosing the right tool can make all the difference in our experience.

Forensic Blockchain Investigation:
Note: The names and addresses mentioned in this report are fictitious to protect the identity of victims and to illustrate the case for educational purposes. The objective is to demonstrate how Forensic Blockchain Analysis can track illicit activities and reinforce that cryptocurrencies are not a lawless territory.
The Scheme: The Locked Token of “Crypto Club”

In 2023, a supposedly revolutionary platform in the cryptocurrency market began attracting investors with promises of high returns, around 1% per day.
The investment model was based on purchasing an exclusive platform token, which, according to the project team, had several advantages, such as:
• Constant appreciation due to the company’s growth.
• Monthly profit distribution through a staking system.
• Access to exclusive benefits, such as fee exemptions and bonuses (which is common in legitimate projects but also widely used by scammers).
To join the project, investors had to buy this token by sending ETH or USDT to the platform’s wallets:
ETH Wallet: 0x456def...789ghiUSDT Wallet: 0xabc123...456xyz
The Mechanism:
The acquired token would be locked for 90 days in a staking process, with the promise that a percentage of the locked tokens would be distributed as a return for supporting the protocol. During the staking period, users would not be able to withdraw their tokens, but in return, they could receive compensation based on the amount of tokens committed. Additionally, staking would allow participants to influence the protocol’s governance by voting on proposals and important decisions about its development, while also contributing to the network’s security by helping to maintain the integrity of the system.
When the alleged unlocking date arrived, allowing users to withdraw their profits, the project team announced technical issues due to a major platform update, which was expected to bring improvements that would enhance the platform’s performance and the token’s value.
However, to participate in this new phase, investors were required to lock additional tokens for another 60 days to earn even higher returns. Those who locked more tokens would receive greater benefits and priority access to withdrawals. A few weeks later, the website went offline, customer support channels were deactivated, and all funds disappeared. The estimated loss exceeded $7 million in funds.
The Investigation: Tracking the Fraudulent Transactions
Following multiple complaints, forensic analysts launched an on-chain investigation, utilizing tools such as Etherscan, BscScan, and specialized trackers to map the flow of funds and identify potential connections between suspicious transactions.
1 • Transaction Tracking: Dusting and Chain Hopping

Wallet analysis revealed structured transactions designed to obfuscate tracking. The scammers repeatedly split the funds into smaller amounts, transferring them through multiple intermediary wallets to make tracing more difficult. They also moved small parts of the funds across different blockchains before ultimately depositing them into centralized exchanges.
Transaction Flow:
ETH and USDT were sent from the token contract to intermediary wallets.The funds were split into smaller amounts and moved between multiple wallets to make tracking more difficult.Transfers were made to other blockchains, such as Solana, through decentralized bridges.A final conversion to USDT was made through a DEX contract before being deposited into a centralized exchange.
2 • Conversion to Stablecoins and Cash-Out via Exchange

Before attempting to withdraw the funds, the scammers converted their assets into a widely accepted stablecoin. The analysis showed that they exchanged their assets on decentralized platforms and transferred them to newly created accounts on a centralized exchange. From there, they attempted to move the funds to banks in regions without financial regulations. However, the involvement of centralized platforms made it easier for investigators to track the transactions.
Through the entire investigation and tracking process with specialized professionals and tools, as well as enhanced pattern monitoring techniques, the authorities were able to trace the funds to the exchange and request the freeze of the account, preventing all the funds from being withdrawn.
Conclusion: Cryptocurrencies Are Not a Lawless Territory

Although the decentralized nature and obfuscation techniques can make transaction tracking challenging, advanced tools and specialized monitoring methods enable authorities to trace the flow of funds through publicly available on-chain data, identifying fraudulent activities and preventing further damage. The use of centralized exchanges, decentralized bridges, and stablecoins, while employed to conceal transactions, still presents vulnerabilities that can be exploited by investigators. Ultimately, the existence and importance of blockchain investigations are essential to ensuring that the cryptocurrency space remains secure, transparent, and resistant to financial crimes.
This case underscores key aspects of blockchain investigations, where centralized exchanges played a significant role in identifying those involved, stablecoins served as a bridge between digital assets and traditional money, and investigators relied on blockchain analysis tools to track transactions and uncover illicit activities, demonstrating the effectiveness of forensic techniques in tracing financial crimes.
This case illustrates that, even within a decentralized and pseudonymous environment, financial crimes can be effectively traced and prosecuted through advanced investigative techniques and blockchain analysis.

#Bitcoin #Ethereum #BlockchainAnalysis #Investigation #AML

The SEC has filed an appeal against the recent court ruling in the Ripple case but lacks sufficient evidence to support its claims. The SEC is attempting to prove that XRP buyers expected profits based on Ripple's efforts.
Judge Torres' Ruling
Judge Torres ruled that Ripple's actions, including the sale of XRP, did not influence price movements enough to create investor expectations of profit. This means the SEC failed to demonstrate that programmatic buyers of XRP expected returns from Ripple’s activities.
Unsuccessful Expert Testimony
The SEC now has to convince the appeals court that these investors expected profits. However, the court rejected expert testimony, which was supposed to be key evidence for the SEC. The SEC’s expert based his conclusions on speculative assumptions about what a “reasonable XRP buyer” would expect, which the court found insufficient.
Evidence from Actual Investors
Another problem for the SEC is the testimony from real #Xrp🔥🔥 investors. These investors stated that they did not rely on Ripple's activities when purchasing XRP and often were unaware of Ripple's initiatives. This undermines the SEC’s argument that a “reasonable investor” would have expected profits based on Ripple’s actions, such as blog posts or marketing materials.
Lack of Ripple’s Influence on XRP Price
Moreover, products that Ripple is developing, such as the On-Demand Liquidity (ODL) software for cross-border transactions using XRP, have not significantly impacted XRP's price. This is confirmed by actual XRP community members, who state that Ripple's actions did not affect their decision to invest.
Lack of Evidence for the Appeal
The SEC is trying to convince the Second Circuit Court, but its arguments are weak. Its expert testimony was rejected, and evidence from actual investors does not support its claims. Now the SEC must rely on a hypothetical investor and argue that this fictional person expected profits from Ripple’s efforts, even though they lack solid evidence to back this claim.
#Ripple💰 , #RippleVsSEC , #courtcase , #investigation

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Chinese industry news and cryptocurrency market data company Feixiaohao is allegedly the subject of an inquiry by the local authorities.

As part of an ongoing investigation in Inner Mongolia, an autonomous area of northern China, a number of top executives of Feixiaohao are allegedly under arrest, according to a story published on August 28 by Chinese cryptocurrency journalist Colin Wu on his channel Wu Blockchain News.

Wu referenced a WeChat post from a local crypto channel that stated the Inner Mongolia police have detained "many key members of the Feixiaohao team" in order to conduct an investigation.

The purported investigation's motivations are unknown.

The largest simplified Chinese cryptocurrency market statistics website was established in August 2017, as stated on Feixiaohao's official website.

The website was sometimes referred to as the CoinGecko of China. CoinGecko is a significant international platform used to track the market capitalization of over 14,000 cryptocurrencies.

Wu's sources claim that Feixiaohao's purported inquiry has been going on for more than six months, but the probe's motivations are now unknown.

Wu observed, "Many of Feixiaohao's exchange partners said they were unable to reach them."

Feixiaohao was contacted by Cointelegraph for comment about the purported investigation and the arrest; but, at the time of writing, no answer had been received.

The website has continued to publish fresh items in the news section despite the announcements of the arrests; the most current pieces are dated August 30.

Feixiaohao remained operational during China's 2021 "great Bitcoin ban."

Data from SimilarWeb, a website that analyzes traffic, indicates that in July 2024, Feixiaohao received about 200,000 views each month. China was the country that received the most visitors last month, making about 23% of Feixiaohao's total visits worldwide.

China's user base for Feixiaohao may be regarded as substantial, particularly in light of the mainland's strict policies regarding the cryptocurrency market.

In September 2021, the People's Bank of China (PBoC), the country's central bank, formally implemented a series of regulations aimed at curbing the cryptocurrency market's growth in mainland China.

The Chinese prohibition on cryptocurrency, according to industry insiders, did not threaten local cryptocurrency media, even though prominent crypto news sites like ChainNews went down in November 2021 without giving an explanation.

It's unclear if offering crypto information services in mainland China was ultimately declared unlawful, as numerous industry-related Chinese news outlets have so far continued to run.

#China #CoinGecko #investigation #TON #TelegramCEO