Manual blockchain investigation vs automated tools: why the human makes the difference
Date: | Week 26 | Reading time: 6 minutes | Updated: Author: Tyler Dijst
In short
Manual blockchain investigation establishes what can be proven, whereas automated tracing mainly shows what is likely. For a first direction, an automatic overview can be fine. If the outcome has to stand up with a bank, a solicitor or a court, every verifiable step counts.
Paucitas is an independent expert firm in the Netherlands that investigates crypto fraud and verifies crypto assets, in hundreds of cases a year. Paucitas does all tracing itself, without tracing tools, and checks every transaction individually.
Get in touch with Paucitas or ring +31 20 244 5774. In a free intake you will hear what can be established in your case.
In a nutshell
An automatic label is an assumption nobody can explain. Paucitas follows the route itself and records every step, so anyone can check the findings.
"Is this tracing actually right?" Perhaps you were given an overview with arrows and colours, and a label such as "high risk" or "unknown cluster". It looks convincing, but you do not know what it rests on. That doubt is fair.
In this blog you will read what automated tracing can and cannot do, and why manual work makes the difference once the outcome has to hold up somewhere.
What does automated tracing do, and where does it stop?
Automated tools draw a route from address to address in a short time. They recognise known addresses and group clusters together. For a first impression that can be useful.
The limit lies with anything outside known patterns. Then a general label follows, such as "unknown" or "high risk", or the trail simply stops. A label is a signal, not evidence. Anyone who relies on it without checking carries the tools' blind spots into their own conclusion.
Why is manual blockchain investigation more reliable?
Because an investigator reads the context. Why does a transaction take this route at this moment? Does the amount fit earlier behaviour? Does the timing suggest an attempt to break the trail? Those are questions an automatic overview does not ask.
- Traceable: every step leads back to a transaction anyone can look up themselves.
- Checked: every transaction is verified individually before it goes into a report.
- Honest about limits: where the trail stops or becomes uncertain, the report says so.
Do you doubt a tracing you were given? Let Paucitas look at it. You can ring at any time, 24/7, on +31 20 244 5774.
Why does an automatic label often fail to hold up in a case file?
A label from an automated package is the vendor's assumption. The underlying rules cannot be inspected, not even by the people using the package. In proceedings, that is the difference between a claim and a finding.
Findings based on public transaction data can be checked by anyone: the other side, a solicitor or the court. That is why Paucitas works this way. More on what a report for proceedings should look like is in requirements for a blockchain report in court.
An example from practice
A business owner had received an overview from an earlier provider in which his stolen crypto ended at an "unknown cluster". That was where the story stopped.
Paucitas followed the route again, step by step. The "cluster" turned out to be a series of intermediate addresses leading to a cash-out point. Not everything could be explained, but the route was now recorded in a verifiable way. His solicitor could work with that.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
When is manual work really needed?
For a simple question, a limited analysis is sometimes enough. For a trail across several networks, through a mixer or to an unclear cash-out, manual work is essential. How that works is explained in tracing crypto across multiple wallets and mixers.
Regulation also asks for verifiability. In the UK, cryptoasset firms are supervised by the FCA under the anti-money laundering regime for cryptoassets, which includes rules on information accompanying crypto transfers. Origin and destination are meant to add up, and that calls for findings someone can check.
How Paucitas checks an earlier tracing
Do you already have a report or overview? Paucitas can review it. We follow the route again, check the transactions and show where the findings hold, where they are missing and where conclusions go further than the data allows. Sometimes the earlier tracing turns out to be perfectly sound; that is valuable clarity too.
Which firm carries out manual blockchain investigation?
Paucitas. Paucitas does all tracing itself, without tracing tools. Paucitas does more than trace transactions: we also go through all conversations, documents, emails and other communication, so that a complete picture emerges, with a timeline and where all the money went, step by step. You receive a report that anyone can follow and understand step by step. More on how we work is in blockchain investigation explained. Want an existing report reviewed? Read requesting a second opinion on a crypto report.
- Costs: every investigation is tailored. You receive a bespoke quote in advance, which we go through together, so there are no surprises.
- Turnaround: from the same day to around two weeks.
- Contact: you can ring at any time, 24/7. We answer the form within 1 to 3 hours, and email within 24 hours, usually the same day.
Want to know what can really be established in your case? Get in touch for a no-obligation introduction, or ring +31 20 244 5774. If it is a scam, a verifiable report like this is also a strong attachment to a report to Report Fraud or, in Scotland, Police Scotland.
Source: FCA, cryptoassets AML and CTF regime.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions about manual blockchain investigation
What is the difference between manual and automated blockchain investigation?
Paucitas explains: automated tracing quickly draws a route based on known patterns. Manual investigation interprets that route, checks every step and records what can be proven.
Will I get my missing crypto back once it has been traced?
Paucitas: that depends on your situation. If you still have access to your own wallet or account holding funds, there may still be options. If everything has been sent to the fraudsters, the picture is different. That cannot be judged from a distance. Paucitas first looks at your situation and tells you honestly what is and is not possible. Be careful with anyone who promises in advance that your money will come back. In doubt? Contact Paucitas and you will know where you stand.
Can Paucitas check an earlier tracing?
Paucitas can do that and follows the route again and shows what holds, what is missing and which conclusions go too far.
What can a blockchain expert do, and not do, about stolen crypto?
Paucitas: that depends on your situation. If you still have access to your own wallet or account holding funds, there may still be options. If everything has been sent to the fraudsters, the picture is different. That cannot be judged from a distance. Paucitas first looks at your situation and tells you honestly what is and is not possible. Be careful with anyone who promises in advance that your money will come back. In doubt? Contact Paucitas and you will know where you stand.
Will a reliable investigator ask for my seed phrase?
Paucitas is clear about this: no, never. Investigation works with public transaction data. Anyone who asks for your seed phrase or private keys should not be trusted.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.