Peel chain

What it may indicate

A peel chain is a pattern in which a small part of an amount is split off and sent on at each step, while the largest part keeps moving to the next address. Fraudsters use this technique to obscure the origin of funds. Recognising a peel chain helps investigators follow the real route of the coins anyway.

What is a peel chain?

In a peel chain, money moves through a long series of addresses, with a small amount skimmed off at each step, often to an exchange. It resembles peeling an onion: layer by layer, a little is removed. This setup makes the trail look fragmented, while the main flow can often still be followed with the right analysis.

Why do fraudsters use a peel chain?

A peel chain makes it harder to see at a glance where the money went, because the amount is spread across many transactions and addresses. With blockchain analysis the pattern can often still be recognised and unravelled.