Tracing crypto across multiple wallets and mixers: what stays traceable
Date: | Week 28 | Reading time: 7 minutes | Updated: Author: Tyler Dijst
In short
You can often still trace crypto after a mixer, at least in part. A mixer does not erase anything from the blockchain: deposits and payouts stay visible, only the direct link between them is obscured. How far the trail goes differs per case, and Paucitas can usually tell you quickly.
Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud, in hundreds of cases a year. Paucitas follows routes across multiple wallets and mixers and records at each step what is established.
Get in touch with Paucitas or ring +31 20 244 5774. In a free intake you will hear what can still be followed in your case.
In a nutshell
A mixer makes tracing harder, not impossible. Paucitas looks at amounts, timings and what wallets do next. Sometimes that leads to an exchange, sometimes the trail stops. Either way, you know where you stand.
Your crypto did not go straight to one address, but was run through a mixer and then spread across several wallets. It feels as if the trail has gone cold. That is frustrating, especially when a lot of money is involved. Yet the trail has usually not disappeared completely.
A worked example is in the case study of crypto traced through a mixer. Which patterns can point to money laundering is covered in identifying crypto money laundering.
What exactly does a crypto mixer do?
A crypto mixer, also called a tumbler, pools the deposits of many users and then pays out similar amounts to new addresses. The aim is to break the direct link between the incoming and the outgoing address.
Worth knowing: a mixer does not erase any data. All deposits and payouts stay on the blockchain. What is missing is the link between them, and that has to be made plausible again. Law enforcement takes mixers seriously: Europol and partners have already taken mixers offline.
Can you trace crypto after a mixer?
Often yes, but rarely completely. The result depends on the type of mixer, the amount, the number of other users and the time between deposit and payout. With smaller mixers or careless use, incoming and outgoing amounts can sometimes be matched. With large, busy mixers the link becomes weaker, but new leads often appear further down the line.
It is not a matter of pressing a button. It is tracing crypto by hand: spotting patterns, testing possible links and backing up every step. Paucitas does all its tracing itself, without tracing tools, and checks each transaction separately. We also go through all conversations, documents, emails and other communication, so that a complete picture emerges, with a timeline and an overview of where all the money went.
Is there a mixer in your case? Let Paucitas look at it. After a first look we can often already tell you what can still be followed. You can ring at any time, 24/7, on +31 20 244 5774.
How does Paucitas follow crypto across multiple wallets?
After a mixer, crypto is often split, merged and sent on again. At each step Paucitas puts three things side by side: the amount, the timing and what the receiving wallet does next. That builds a picture of the most likely route, sometimes all the way to an exchange.
Exactly how that works differs per case. What we can say is that small details often make the difference: an amount that is slightly off, a fixed rhythm, a wallet that turns up again later.
Some of the things Paucitas looks for
- amounts that, after fees, sit strikingly close to the deposit;
- payouts shortly after the deposit, or in a fixed rhythm;
- wallets that come together again after the mixer or behave the same way;
- switches to another network or another coin;
- an end point where amounts are converted, such as an exchange.
An example from practice
Someone lost crypto after a hack. The thief sent everything through a mixer and then spread it over three wallets. The report had been taken, but nobody knew where the trail led.
Paucitas compared amounts, timings and the later behaviour of the wallets. A large part turned out, with reasonable certainty, to end up at an exchange. With that overview the police could take targeted next steps.
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.
What can an investigation do after a mixer, and what not?
An investigation can map the visible transactions, support likely links and identify an end point. What such an end point looks like is covered in stolen crypto traced to an exchange.
Not every step can be established with certainty. That is why the report states for each step whether something is established or plausible. A blockchain address is also not a person: linking it to an identity runs through regulated firms and the police.
Even a partly reconstructed route has value. The report shows whether money is still available, or where it went, and what the next steps are, for example a request to an exchange. After theft or a scam, one of those steps is reporting it to Report Fraud, or to Police Scotland if you live in Scotland, and the Paucitas report is then a strong attachment that sets everything out fully and clearly. The result is a report anyone can follow and understand step by step.
What is the best thing to do now?
- Gather your own wallet addresses, the addresses you sent to and the transaction details.
- Get in touch with Paucitas, so the trail is mapped while it is still fresh.
How likely it is that you see anything back depends on many factors. Read more in stolen crypto back: 4 factors. Be careful with anyone promising to recover everything: that is often a recovery scam.
What does an investigation cost and how quickly can you get help?
- 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 still be followed in your case? Get in touch for a free intake, or ring +31 20 244 5774. More about our approach is on stolen crypto tracing.
Sources: Europol, cryptomixer taken offline; Report Fraud; Police Scotland, scams and frauds.
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 tracing crypto after a mixer
Which firm can trace crypto after a mixer?
Paucitas is an independent expert firm in the Netherlands that traces crypto, including when a mixer or several wallets are part of the route. Every step is backed up by hand.
Does a mixer erase transactions from the blockchain?
Paucitas explains: no, deposits and payouts remain visible. A mixer only obscures which payout belongs to which deposit.
Is an investigation worth it if the trail can only partly be followed?
Paucitas finds that it often is. A route that demonstrably leads to an exchange gives a concrete lead for the next steps. Where the trail becomes uncertain, the report says so honestly.
Will I get my crypto back once the route is known?
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.
How quickly should I act?
Paucitas advises: preferably fairly soon. The transactions stay visible, but the sooner the route is known, the sooner you know which next steps make sense. You can ring at any time, 24/7.
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.