SCARS Institute’s Encyclopedia of Scams™ Published Continuously for 25 Years
A Complete Guide To Help Law Enforcement Investigate & Trace Cryptocurrency
Provided by Blockchain Intelligence Group, presented by SCARS with permission
What Gives Cryptocurrency Value?
Cryptocurrencies gain value through a combination of factors, including their utility, scarcity, and market demand.
Utility: Cryptocurrencies have value because they can be used to facilitate transactions and store value. For example, Bitcoin can be used to purchase goods and services, and it can also be used to send money across borders quickly and at a lower cost than traditional methods. Other cryptocurrencies have unique features that make them useful in different ways, such as privacy-focused coins that enable anonymous transactions.
Scarcity: Many cryptocurrencies have a limited supply, which gives them value similar to precious metals like gold. For example, Bitcoin has a hard cap of 21 million coins, and as more people adopt it, the supply becomes more scarce. This scarcity makes it more valuable, as people are willing to pay more to acquire it.
Market Demand: The value of cryptocurrencies is ultimately determined by market demand. As more people adopt a particular cryptocurrency and use it for transactions or as a store of value, its price can increase. Conversely, if people lose faith in a cryptocurrency or a negative event occurs, such as a hack or regulatory crackdown, its value can decrease.
Overall, the value of cryptocurrencies is complex and multifaceted, and it is influenced by a range of factors. However, their utility, scarcity, and market demand are among the key factors that contribute to their value.
Is Blockchain (Cryptocurrency) Untraceable?
No, blockchain is not completely untraceable. While blockchain technology provides a high degree of security and transparency, it does not offer complete anonymity.
Every transaction that occurs on a blockchain is recorded on a public ledger, and this information is stored on thousands of computers around the world. While the identity of the user behind a transaction is not explicitly recorded, there are other ways that the person’s identity can be determined. For example, if someone uses a cryptocurrency exchange to buy or sell cryptocurrencies, they must typically provide personal information such as their name, address, and email address. This information can be used to link a person to a specific transaction on the blockchain.
Moreover, while cryptocurrencies are not inherently linked to personal identities, it is possible to trace the movement of funds on a blockchain by analyzing transaction patterns and using other techniques such as blockchain forensics.
Therefore, while blockchain technology can provide a high level of security and transparency, it is not completely untraceable or anonymous. It is important to remember that blockchain technology is not a guarantee of anonymity or privacy, and users should take steps to protect their identities and personal information when using cryptocurrencies.
This is what makes cryptocurrency traceable and recoverable!
Can Cryptocurrencies That Have Been Stolen By Criminals Be Traced And Recovered?
The short answer is YES!
Cryptocurrencies that have been stolen by criminals can sometimes be traced and recovered, but it can be a complex process. This Handbook will help the reader understand that process.
One of the benefits of blockchain technology is that every transaction on the network is recorded on a public ledger, which means that all transactions associated with a stolen cryptocurrency can be traced. However, the identity of the person behind the transaction may not be immediately apparent, as cryptocurrency transactions are typically pseudonymous. However, police around the world are using a process of seizure without really knowing the identity of the criminal(s).
In some cases, law enforcement agencies have been successful in tracing stolen cryptocurrencies by following the transaction trail and identifying the individuals or organizations involved. However, this requires the police to trace and then prosecutors to work with the courts to get Court Orders issued to seize the cryptocurrency for any victims.
The process requires the time and involvement of a friendly court, but it is far from impossible. Hundreds of millions of dollars to billion are being seized each year now.
We Hope This Cryptocurrency Investigator’s Handbook Helps!
We are providing this guide to help law enforcement to better support scam victims and to help victims better understand the process.
Disclaimer: The contents of this paper is for educational purposes only. Nothing in this paper should be viewed as investment or legal advice. Investigators, in
particular law enforcement officers should always follow the policies and procedures of your respective agency and consult with agency counsel and prosecutors when conducting an investigation into cryptocurrencies, digital assets and non-fungible tokens (NFTs). The contents of this paper are intended as a guide only and investigators are responsible to follow the law, regulation, and policy of their respective jurisdiction
Copyright © 2022 Blockchain Intelligence Group. Reprinted and distributed with permission of the author.
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Table of Contents
- A Complete Cryptocurrency Tracing Guide For Law Enforcement
- A Complete Guide To Help Law Enforcement Investigate & Trace Cryptocurrency
- What Gives Cryptocurrency Value?
- Is Blockchain (Cryptocurrency) Untraceable?
- Can Cryptocurrencies That Have Been Stolen By Criminals Be Traced And Recovered?
- We Hope This Cryptocurrency Investigator’s Handbook Helps!
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Important Information for New Scam Victims
- Please visit www.ScamVictimsSupport.org – a SCARS Website for New Scam Victims & Sextortion Victims
- Enroll in FREE SCARS Scam Survivor’s School now at www.SCARSeducation.org
- Please visit www.ScamPsychology.org – to more fully understand the psychological concepts involved in scams and scam victim recovery
If you are looking for local trauma counselors please visit counseling.AgainstScams.org or join SCARS for our counseling/therapy benefit: membership.AgainstScams.org
If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines
A Note About Labeling!
We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!
A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
Statement About Victim Blaming
Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.
These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.
Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org
Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.
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