By Amanda Porupski, CPA, CVA, MAcc, Forensic Accounting Expert Witness
Cryptocurrency seizures by law enforcement are becoming increasingly common. These cases often involve allegations of illicit activity and rely on blockchain tracing tools to support the seizure of digital assets. In such matters, forensic accountants can provide valuable support by independently tracing transactions, reviewing supporting documents, and assisting legal teams and the court in understanding the flow of funds.
Objective Support in Asset Tracing
In matters involving seized cryptocurrency, forensic accountants are often retained to:
- Independently trace the flow of funds across wallets and exchanges
- Review and analyze blockchain tracing tools or reports used by law enforcement
- Assist legal counsel in identifying key documents and data (e.g., exchange records, wallet attribution, valuation data, etc.)
- Prepare transaction schedules, summary charts, expert reports, and expert witness testimony for use in court proceedings
- Evaluate the nature of fund movement, including whether assets appear commingled, layered, or converted across blockchains
Our role is not to advocate for one side, but to present objective, evidence-based analyses that clarify how digital assets moved and whether they can be linked to specific activity or actors.
Document Review and Analysis
We frequently assist legal teams in reviewing materials relied upon in the seizure process, including:
- Wallet addresses and transactional histories
- Tracing summaries produced by third-party tools
- Exchange KYC or AML documentation, if available
- Valuation data at key points (e.g., date of seizure)
Forensic accountants also help evaluate whether attribution and heuristics used in blockchain tracing tools are supported by evidence, and whether conclusions drawn by law enforcement can be independently verified or reasonably interpreted.
Explaining Tracing Methodologies to the Court
One of the key functions of an expert in these matters is to explain blockchain tracing techniques in a way that is understood by the courts, arbitrators, or other decision-makers. This includes:
- Outlining the tracing process from wallet to wallet
- Clarifying how tools cluster addresses or infer associations
- Identifying the level of certainty associated with particular findings
- Providing context when attribution relies on publicly available or third-party data
By clearly presenting these findings, experts can help ensure that the financial record is accurately and objectively understood.
Independent Perspective
Blockchain tracing tools can be useful in identifying patterns and highlighting potential links between transactions. However, results from such tools should be evaluated alongside other available evidence. A forensic accountant’s role includes assessing the reliability and scope of these tools, explaining what the data shows (and doesn’t show), and preparing alternative analyses when appropriate.
Supporting the Legal Process
Whether assisting in civil or criminal matters, the involvement of a forensic accountant can help ensure that asset tracing is documented clearly, presented with transparency, and grounded in objective analysis. This is particularly important in matters involving substantial asset values, complex transaction patterns, or multiple parties across jurisdictions.
For more information or to discuss a specific matter, contact Amanda Porupski. We assist legal teams with blockchain tracing, transaction reconstruction, rebuttal analysis, and expert testimony nationwide.