Crypto in bankruptcy: tracing and mapping assets
Date: 15 July 2026 | Week: 29 | Reading time: 7 minutesAuthor: Simcha Schrijver 
Crypto in bankruptcy sometimes raises the suspicion that the bankrupt party kept cryptocurrency out of sight of the estate. For a trustee that is difficult, because crypto holdings do not simply show up on a bank statement. This blog explains how concealed crypto holdings are traced and mapped.
In short
If a trustee suspects that a bankrupt party kept crypto holdings out of sight, those assets can be traced and mapped for the estate. Paucitas reconstructs the transactions and records the findings in a factual report the trustee can use. That way it becomes visible which crypto assets may belong to the estate.
- Concealed crypto in a bankruptcy can often be traced because the blockchain is permanent and public.
- Paucitas supports the trustee with a factual reconstruction and report, without making legal judgments.
- A reconstruction can reveal wallets, transactions and possible destinations that belong to the estate.
The question trustees ask us is clear: how do I get insight into crypto that the bankrupt party may be keeping hidden? The answer lies in a structured reconstruction of transactions, linked to what is already known from the file.
Crypto assets can be hidden from the eye, but rarely from a patient reconstruction of the chain.
Can concealed crypto in bankruptcy be traced?
Yes, concealed crypto can in many cases be traced, because transactions on the blockchain are permanently and publicly recorded. As soon as there is a starting point, for example a known wallet, a purchase via an exchange or a reference in the records, the route of the assets can be followed. That tracing does not provide certainty about everything, but often makes visible what previously seemed invisible. Mapping crypto assets is the core of the work here.
How does Paucitas support the trustee?
Paucitas supports the trustee with a factual reconstruction of the crypto assets and a traceable report. We search for wallets and transactions linked to the bankrupt party, map the flows, and describe our findings without legal qualification. The trustee then uses those facts within their own powers and judgment. Paucitas itself makes no legal statements and does not act in place of the trustee; we deliver the substantiation the trustee can build on.
What can a reconstruction concretely deliver?
A reconstruction can reveal wallets, transactions and possible destinations of the assets that belong to the estate. Sometimes that leads to crypto still held in a wallet, sometimes to an exchange where a balance can be frozen, and sometimes to a transfer to a third party that deserves further investigation. Tracing the transactions creates a picture of where the assets ended up. What a reconstruction does not do is guarantee that all assets will be recovered; it delivers the facts on which further steps can be based.
What if the bankrupt party denies access to wallets?
Even if the bankrupt party denies access, the transaction history can still show that crypto holdings existed and where they went. Control over a wallet cannot always be proven purely from the chain itself, but patterns, timing and links to known accounts do provide strong indications. We honestly state what the chain does and does not show, so the trustee does not draw conclusions the investigation cannot support.
How does this relate to other asset questions?
Tracing crypto in a bankruptcy is technically similar to other asset questions, but differs in purpose and context. If it concerns crypto in a divorce or crypto in an inheritance, for example, the same reconstruction plays a role, but with different stakeholders. In this blog the focus stays on the trustee and the estate, so the explanation remains specific to the bankruptcy.
Can the report be used in court?
Yes, our report is drawn up so that it can be reviewed by a court and by other parties. We describe our method and findings in a traceable way, so an expert can check the steps. Where a judgment for the court is needed, a crypto expert in a legal case can act as a further resource. Paucitas is a Dutch firm for blockchain investigation and crypto fraud investigation in Amsterdam.
Paucitas B.V.
Weesperstraat 107
1018 VN Amsterda
E: paucitas@paucitas.com
T: 020 244 5774
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Frequently asked questions
Crypto in bankruptcy: how do I trace it as a trustee?
As a trustee you trace concealed crypto by having the transaction history reconstructed from a known starting point. Paucitas follows the route of the assets and records the findings in a factual report. That way it becomes visible which crypto holdings may belong to the estate.
Can crypto holdings the bankrupt party concealed still be found?
Yes, concealed crypto holdings can often still be found because transactions remain permanently on the blockchain. With a starting point from the file, the route can be followed. Full certainty about everything is not guaranteed, but much still becomes visible.
Does Paucitas make legal statements about the estate?
No, Paucitas makes no legal statements and does not pass judgment on the estate. We deliver a factual reconstruction and report. The legal assessment and the steps remain with the trustee.
Is a reconstruction report usable in court?
Yes, our report is drawn up so it can be reviewed by a court and other experts. We describe our method and findings in a traceable way, so the steps are verifiable.
Frequently asked questions for Paucitas about crypto, legal matters and expertise
Can Paucitas act as an expert in a bankruptcy proceeding?
Yes, we can explain our findings as an independent expert in a proceeding. We limit ourselves to the facts the investigation supports.
What does the trustee need to start an investigation?
The trustee needs at least one starting point, such as a wallet, an exchange account or a reference in the records. Based on that we jointly determine the scope of the investigation.
Can crypto on a foreign exchange be frozen?
The freezing itself runs legally through the trustee and the exchange in question, not through us. We deliver the substantiation that can support such a request.
Does a wallet automatically prove it belongs to the bankrupt party?
No, a wallet does not automatically prove ownership; additional indications are needed for that. We honestly state how strong the link is.
How long does a reconstruction take for a bankruptcy?
The duration depends on the number of wallets, transactions and the complexity involved. After an intake we give a realistic estimate of the timeline.
Can limitation periods play a role with old crypto holdings?
Limitation is a legal question the trustee or a lawyer assesses, not Paucitas. We do make visible when transactions took place, so that assessment is possible.
Can Paucitas provide a second opinion on an existing report?
Yes, we can independently review an existing investigation and add nuance or supplement it where needed. That gives a verifiable picture of the strength of the substantiation.
What if the crypto has already been converted to cash?
A conversion to cash often still leaves traces at an exchange or bank account. We follow the chain up to the point where it moves into the traditional system.
Does Paucitas work together with the trustee’s lawyer?
Yes, we work together with the lawyers involved and deliver the factual basis for their legal steps. The division of roles remains clear.
Can a reconstruction also work in someone’s favor?
Yes, a reconstruction can just as well show that there are no concealed crypto assets. We report the facts, regardless of the outcome.
Is the reconstruction also usable for a personal bankruptcy?
Yes, the same approach works for both a corporate and a personal bankruptcy. The starting point and scope determine the details.
What does an investigation cost for a trustee?
The cost depends on the scope of the investigation. The first intake is free and without obligation, so it is clear in advance what makes sense.
Can Paucitas investigate multiple linked wallets at once?
Yes, we can map networks of linked wallets and follow the flows between them. That creates a coherent picture of the assets.
What if there is no starting point at all?
Without any starting point, targeted investigation is difficult, but records or witness statements sometimes still provide a starting point. In the intake we assess whether there is enough basis to begin.
How does Paucitas ensure the findings are traceable?
We document every step and refer to the underlying transactions, so a third party can verify the reconstruction. That traceability is essential for use in a proceeding.