Blockchain analytics tools provide crypto investigators with a comprehensive view of transactions, underscoring the transparency of blockchain technology. However, tracking fund flows through decentralized exchanges (DEXs) can present significant challenges.
At Crystal Intelligence, we have addressed this issue to streamline the investigative process.
The latest versions of our tool incorporate detailed information on token swaps, providing investigators with new insights to track the flow of funds to and from services offering coin swaps.
This new functionality includes comprehensive data such as:
- Input and output asset amounts
- Fees paid to the DEX
- Timestamps
- Locations of the swaps
Why is this important?
Criminals who steal funds or defraud a company or individual often need to move the stolen cryptocurrencies through exchanges to launder them. However, because blockchain transfers are traceable, this is not a simple task. As a result, there has been an increase in services designed to facilitate money laundering.
Decentralized protocols, especially those that offer automated token swapping or cross-chain transactions, have become essential for criminals needing to launder funds. A specific type of virtual asset service, known as “coin swap services,” is particularly attractive for this purpose.
These platforms often operate online or through instant messaging, allowing users to exchange crypto, cash, or other electronic funds without requiring an account or identity verification.
Typical features of coin swap services:
Operate in fraudulent environments:
They openly advertise laundering services on cybercrime forums.
Nested services:
They often function within larger exchanges, identifiable only through blockchain analytics and crypto intelligence solutions like Crystal.
Fake legitimacy:
They display counterfeit AML (Anti Money Laundering) policies on their websites, replicating them across multiple similar services they own.
Sanctioned areas:
They operate in regions like Russia and other high-risk areas.
Collaboration with sanctioned banks:
They convert funds through these banks to avoid direct engagement with crypto assets.
With the increasing popularity of coin swap services, Virtual Asset Service Providers (VASPs) can significantly reduce risks by using a comprehensive crypto intelligence solution like ours to monitor and identify fraudulent transactions and addresses. Teams should thoroughly examine the origins of their customers’ deposits and carefully assess requests for bank account access from suspicious entities.
Efficient tracking of cryptocurrency assets allows investigators and law enforcement agencies to monitor suspicious blockchain activity quickly and accurately at a local level, providing essential speed and progress in their efforts.
