A blockchain report that holds up in court: what it must meet
Date: | Week 28 | Reading time: 7 minutes | Updated: Author: Simcha Schrijver
In short
A blockchain report for court holds up when it is reproducible, traceable and independent. Another expert must be able to reach the same result with the same data. Whether the report persuades is always, in the end, for the court to decide.
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. We handle hundreds of cases a year.
Get in touch with Paucitas or ring +31 20 244 5774. In a no-obligation introduction, with your solicitor if you like, you will hear what can be established in your case.
In a nutshell
A report rarely falls down on its conclusion, but often on the route to it. Paucitas records every step, so the court, the other side and your solicitor can all check it for themselves. Unsure about a report that is already on the table? We are happy to look at that too.
You are in proceedings, or they are on the way. Crypto is involved, and you want the facts laid out as they really are. Perhaps the other side has already produced a report you do not trust. That is a tense position to be in, and we understand that well.
This article is about the requirements for the report itself. Whether a crypto report can be used as evidence at all is covered in can a crypto report be used as evidence in court.
What does a blockchain report for court need to meet?
In practice it comes down to three requirements. They sound simple, but this is exactly where things often go wrong.
- Reproducible: another expert reaches the same result with the same data and method.
- Traceable: the route from transaction to conclusion can be followed step by step, with no gaps.
- Independent: the author has no stake in the outcome and provides facts, not one side's position.
These are not formalities. They decide whether the court can weigh the findings at all. A report that does not set out the route in a checkable way leaves the court with a conclusion it cannot test. The questions judges often ask are covered in blockchain evidence: questions from the judge.
Why does reproducibility matter so much?
A court looks not only at what is concluded, but above all at whether that conclusion stands up. A result nobody can recalculate carries little evidential value, however correct it may be.
That is why a sound report records at every step which data was used, which transactions and addresses were followed and which assumptions were made. Paucitas does all its tracing itself, without tracing tools, and checks each transaction separately before it goes into a report. Paucitas also looks beyond the blockchain: we go through conversations, documents, emails and other communication as well, so that a complete picture emerges, with a timeline and an overview of where the money went. The result is a report anyone can follow and understand step by step.
What that means for your case depends on the question at issue. Sometimes the route can be closed completely. Sometimes the trail stops at a certain point, and the report says so honestly. That is valuable information for your solicitor as well.
What does a court expect from a crypto expert?
That every step can be checked independently and that the expert is impartial. There must be no leap in the reasoning. In England and Wales, Part 35 of the Civil Procedure Rules makes clear that an expert's duty is to help the court, and that this duty overrides any obligation to the party paying them. In Scotland the procedure differs, but the principle is the same: the court weighs the evidence.
When to bring in an independent expert, and how that differs from a party-appointed expert, is explained in an independent expert in legal proceedings.
Are proceedings under way, or on the horizon? Let Paucitas take a look with you, together with your solicitor if you like. You can ring at any time, 24/7, on +31 20 244 5774.
An example from practice
In a dispute over the origin of crypto assets, one party produced a report with a firm conclusion: the money supposedly came from a suspicious source. The report only showed end results. Which transactions had been followed, and which assumptions had been made, was not in it.
The other side had the report reviewed. Using the same data, the route could not be found again. As a result the court could not establish its evidential value, and the report carried hardly any weight. Not because the conclusion was necessarily wrong, but because nobody could check it.
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.
The other side has already produced a report. What now?
That happens a lot. A report can look convincing and still rest on a method nobody can follow. It can also simply be right. You only know once someone checks it independently.
Paucitas can review an existing report for reproducibility and traceability. Sometimes the conclusion stands, and then at least you know where you are. Sometimes there turn out to be gaps that make the difference in your case. Read more about a second opinion on a crypto report and counter-expertise in a crypto dispute.
What a sound report shows as a minimum
- the question investigated and who gave the instruction;
- which data was used and where it came from;
- for each step, which transaction was followed, with time, amount and network;
- which assumptions were made, and why;
- what the findings do and do not show, and where the trail stops;
- a statement on the independence of the author.
What does a report cost and how quickly can you get help?
In proceedings we take account of the deadlines the court sets, so your solicitor can respond in time.
- 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 be established in your case? Get in touch for a free intake, or ring +31 20 244 5774. More about our approach is on expert report for court and, for lawyers, on lawyers and insolvency practitioners.
Source: Civil Procedure Rules, Part 35 (Ministry of Justice).
Do you have questions about this blog?
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More on Paucitas
Frequently asked questions about a blockchain report for court
What decides the evidential value of a crypto report?
Paucitas explains: mainly whether the method can be followed and repeated, not how confident the conclusion sounds. The court weighs that itself in the end.
Can Paucitas review an existing blockchain report?
Paucitas can, and checks whether the route can be found again with the same data and whether the conclusion still rests on that data. Sometimes a report stands, sometimes it does not. Either way, you know where you are.
Can Paucitas act as an independent expert?
Paucitas provides an independent report on the facts. Whether and how an expert is heard or appointed in the proceedings is for the parties and the court to decide.
Can Paucitas promise the court will accept the report?
Paucitas cannot promise that, and nobody can. Paucitas makes sure the report is reproducible, traceable and independent. The judgement lies with the court.
Does Paucitas work with my solicitor?
Paucitas is glad to work with your solicitor. Your solicitor sets the legal course, Paucitas provides the facts. A first introduction is without obligation.
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.