Criminals can hide stolen cryptocurrencies, but they are not untraceable

Criminals who steal crypto can quickly spread the loot across multiple addresses, but they are not automatically out of sight. Analysis firm Arkham explains how researchers track money flows and try to link wallet addresses to individuals or organizations. Confirmed transactions on public blockchains remain visible, creating a lasting money trail. Researchers follow the coins and look for addresses that likely belong to the same owner. A true identity usually comes into view through public information or customer data from a crypto exchange. A public blockchain does not display the name of an account holder, but it does show which address sends money, how much is sent, and where it goes. Researchers start at the address where the stolen coins have ended up and follow each subsequent transfer. Special software organizes these transactions into a clear network. This makes it visible when money is distributed across many addresses or later comes together in one place. The hardest part is finding the person behind an address, for which researchers combine blockchain information with data from the real world. If the loot ends up at a crypto exchange, that exchange can know who is using the account through identity verification. Police and justice can request this data. Criminals use services that mix transactions or move coins to another blockchain, causing the connection between incoming and outgoing payments to disappear. Researchers compare timestamps, amounts, and behavior, but these connections are less certain. An Europol operation identified 249 crypto addresses worth 12.1 million euros. Tracking is not the same as recovering; for that, access to the coins or cooperation from a platform and justice is needed.

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