Case study: a transaction followed from victim to exchange

How was this transaction traced to an exchange and deposit address?

The victim had invested in a trading platform that showed a nicely growing balance. When he tried to withdraw money, it did not work. He was first asked to pay another sum. That is when he came to Paucitas.

The investigation started with his own payment. From there, the money was followed from address to address. Each step was recorded with date, amount and transaction hash. The result is a chain reconstruction: a route that someone else can check for themselves.

Which route did the money take?

Broadly speaking, the route had five parts:

1. Starting point: the payment from the victim’s address.
2. First receiving address: the platform did not hold on to the money but passed it on almost immediately.
3. Splitting: through a chain of intermediate addresses, the amount was split into smaller parts.
4. Collection address: after a few steps, the separate flows came together again.
5. Cash-out point: from that address, the money went to a deposit address at an exchange abroad.

Splitting and merging makes a route confusing, but not invisible. Every step stays on the blockchain. It does take patience and precision to put them in the right order, especially when there are dozens of addresses in between.

We see this pattern often. It does not mean every route looks like this. Sometimes a route is shorter, sometimes money moves across several networks or through a mixer. How that works out is covered in tracing crypto across wallets and mixers.

Does this sound familiar? Let Paucitas look at your payments. You can ring any time, 24/7, on +31 20 244 5774.

What happens at the cash-out point?

At the cash-out point the money arrives at an address belonging to an exchange. There it leaves the public blockchain. What happens next, such as a conversion or a payout to a bank account, can no longer be seen on the blockchain.

For the victim this was an important moment. For the first time he could see in black and white where his money had gone, instead of just a balance on a screen that turned out to be false.

That is exactly why this point matters so much. It is the end of the visible route and the start of the next steps. An exchange works with customer data. Whether and to whom it releases that data is decided by the law and the competent authorities.

What could the victim do with the recorded route?

He now had a report anyone can follow and understand step by step. It showed where his money had gone and what the next steps were. In a case of fraud, one of those steps is reporting it to Action Fraud or, in Scotland, to Police Scotland, and the Paucitas report is then a strong attachment that sets everything out fully and clearly. A solicitor can use the same route to assess whether a civil step makes sense. Which body does what is explained in institutions and crypto investment fraud.

Paucitas does not promise that money will come back. But after an investigation you know where it went, and that often brings peace of mind and direction. What is realistic is covered in the chance of seeing stolen crypto again.

What Paucitas does for you

Paucitas looks into everything for you: the transactions, the route of the money, the parties and platforms and the documents. Paucitas also reads through all the conversations, emails and other communication, so you get the full picture: a timeline and where all the money went, step by step. Paucitas does all tracing itself, without tracing tools. That way it becomes clear how far the route is established and where uncertainty begins. A similar case is described in the stolen bitcoin case.

• Costs: every investigation is tailored. You receive a tailored quote in advance, which we go through together, with no surprises.
• Turnaround: from the same day to around two weeks.
• Availability: you can ring 24/7, we answer the form within 1 to 3 hours and email within 24 hours, usually the same day.

Want to know where your money went? Get in touch for a free intake, or ring +31 20 244 5774. Through the form, you will hear from us within 1 to 3 hours.

Sources: Action Fraud, report fraud; Police Scotland, scams and frauds; Europol, investment scams.