Case study: USDC fraud across three networks unravelled

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Date: 4 September 2026 | Week: 36 | Reading time: 7 minutes | Updated: 26 October 2026
Author: Tyler Dijst

You sent USDC to a platform that turned out to be a scam, or you suspect it was. You try to follow the money yourself and suddenly see it disappear. That is confusing and feels like a dead end. This case study shows how such a route across three networks could still be followed, and what it gave the person affected.

Can USDC fraud be traced across several networks?

Yes, in most cases. USDC is a stablecoin that exists on several networks. Within one network you follow a straight line. If the money goes through a so-called bridge to another network, it disappears on one network and reappears on the other. That is called a cross-chain transfer.

There is no single transaction that records both networks at once. So every switch has to be substantiated separately. The steps themselves are not the hardest part; the number of links decides how much can be established with certainty.

How did this case start?

A woman had sent USDC to an investment platform in four payments. When withdrawals stopped working, she tried to follow the money herself on a block explorer. The trail seemed to end, because the funds vanished from one network. She came to Paucitas with her own addresses, the transaction hash for each payment and an export from the platform where she had bought the USDC.

Sound familiar? Let Paucitas look at your trail, even if you think it is a dead end. You can ring us at any time, 24/7, on +31 20 244 5774.

How did the route run across Ethereum, Polygon and Arbitrum?

• Ethereum: the four payments came together at one address, which also received other people's money in the same period.
• Polygon: through a bridge the amount went to Polygon, where it was split into six unequal parts. Four parts were merged again within a day.
• Arbitrum: through a second bridge the merged amount went in two transactions to an address belonging to an exchange.

The two small parts left behind on Polygon were followed too. One of them went straight to a second platform. Small branches look unimportant, but they often end up at a firm that holds records.

How does Paucitas establish a switch between networks?

By putting four pieces of data side by side: the exact amount, the time on both sides, the bridge used and the address that received the amount. If they match and there is no second candidate in that time window, the link can be followed.

The amount alone is not enough, especially with round sums. That is why the report states for one of the six parts that the switch cannot be linked with certainty, with the reason given. That honesty actually makes a report stronger.

What did the report give the person affected?

The report listed nineteen transactions with transaction hashes across three networks, two switches of which one was certain and one carried a caveat, and two exchanges where funds arrived, with the times. She then knew where her money had gone and could take targeted next steps.

With USDC, the issuer can technically freeze addresses. In practice that happens at the request of a competent authority. In the EU, crypto service providers fall under the MiCA Regulation. The sooner the facts are on paper, the better such a request can be supported. Nobody can promise in advance that the money will come back. Clarity about the route is, however, the basis for every next step.

What Paucitas does for you

Paucitas looks into everything for you: your transactions, the route of the money across every network, the platforms where it arrived and the documents. Paucitas also reads through all the conversations, emails and other communication. That gives you the full picture, with a timeline and where all the money went, step by step. Paucitas does all its tracing itself, without tracing tools. You receive a report that anyone can follow and understand step by step, including the police and your solicitor.

• What you can provide: your own addresses, the transaction hash for each payment, exports and screenshots. Never your recovery phrase or private key.
• Costs: every investigation is tailored. You receive a bespoke quote in advance, which we go through together, with no surprises.
• Turnaround: from the same day to around two weeks.

What can you do with the Paucitas report? It shows whether money is still available or where it went, and what the next steps are. In a case of fraud, one of those steps is reporting it to Report Fraud in England, Wales and Northern Ireland, or to Police Scotland. The Paucitas report is a strong attachment that sets everything out fully and clearly, for them and for your solicitor. What to record yourself in the first hours is covered in following a transfer to a fake platform. A simpler route within one network is shown in the case of a transaction traced to the exchange. How our work goes in general is explained in blockchain investigation explained, and what we do for private individuals on our page for private individuals.

Does your USDC seem to vanish? 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: MiCA Regulation (EU) 2023/1114; Report Fraud; Police Scotland, scams and frauds.