Cryptocurrency Due Diligence

Due diligence can reveal: actual vs. claimed transaction volumes and holdings, interactions with high-risk entities (mixers, darknet, sanctions), true historical trading patterns, source of fund origins, connections to known fraud or scam wallets, undisclosed related addresses, inconsistencies between claims and on-chain reality, and overall risk profile. We've uncovered fraud, misrepresentation, and hidden risks that saved clients from significant losses.

Wallet ownership can be verified several ways: cryptographic signature verification (asking the claimed owner to sign a message), behavioral analysis (checking if activity patterns match claimed usage), historical correlation (matching known transactions to claimed history), and process of elimination. While only private key holders can definitively prove ownership, we can establish high confidence through multiple verification methods.

Yes, we screen against all major sanctions lists including OFAC SDN, EU consolidated lists, UK HMT, UN sanctions, and others. We also check for interactions with addresses associated with known high-risk entities, darknet markets, ransomware operations, and fraud schemes. Both direct holdings and indirect exposure through counterparties are evaluated.

Timeline depends on scope and complexity. Basic due diligence on a single wallet can be completed in 24-48 hours. Complex investigations involving multiple wallets, deep historical analysis, or cross-chain activity typically take 3-7 business days. Urgent investigations can be expedited for time-sensitive transactions.

We provide comprehensive reports including: executive summary with key findings, detailed risk assessment with scoring, complete transaction analysis, counterparty identification, sanctions screening results, holdings verification, source of funds analysis, visual diagrams of fund flows, and raw data exports. Reports are designed for decision-makers and can be shared with legal counsel, compliance teams, or boards.

Absolutely. We analyze all DeFi interactions including lending/borrowing positions, liquidity provision, yield farming, staking, governance participation, and complex multi-step DeFi strategies. We can verify claimed yields, track impermanent loss, and identify any concerning protocol interactions.

While privacy coins like Monero have limited traceability, we can identify when funds move into privacy coins from transparent chains and flag this as a risk factor. For Bitcoin mixers and Ethereum tumblers, we can often trace funds through these services using advanced analysis techniques, and we always flag mixer interaction as a significant risk indicator.

Yes. Blockchain data is public, so we can investigate any address without requiring cooperation from the wallet owner. This is useful for evaluating counterparties, investigating potential fraud, or verifying claims made by third parties. Of course, ownership verification is stronger with cooperation (cryptographic signatures).

If we identify significant red flags—sanctions exposure, fraud connections, undisclosed risks—we document these clearly with supporting evidence. We provide actionable information so you can make informed decisions about whether to proceed with transactions, what additional protections to require, or whether to decline entirely.

Yes, we offer ongoing monitoring services that alert you to significant changes in wallet activity, new sanctions list matches, or emerging risk factors after the initial due diligence. This is particularly valuable for ongoing business relationships or portfolio monitoring.