Criminals laundering crypto through cross-chain transactions are betting on confusion, obfuscation, and jurisdictional blind spots. But at BlockDivers, we chase shadows—and we catch them. This post pulls back the curtain on how modern forensic blockchain investigations are conducted across multiple blockchains, tools, and tactics. From the first hop to the final off-ramp, here’s how we follow the money.
Start With the Known
Every successful investigation begins with an anchor point—what we call the known element. This could be a wallet that received stolen funds, a fraudulent smart contract, or a flagged transaction ID.
Once identified, we immediately:
- Extract the wallet’s full transaction history
- Trace all outbound transfers across time and chains
- Deconstruct transactions split into smaller hops or wrapped in obscure tokens
- Apply forensic tagging to distinguish high-risk activity
Think of it like working a crime scene—we cordon off the zone and then review every car, person, and movement that entered or exited.
Follow the Bridges and DEXs
To obscure movement, criminals often exploit cross-chain bridges and decentralized exchanges (DEXs). These tools allow them to:
- Hop from one blockchain to another (e.g., Ethereum ➝ BNB ➝ Tron)
- Swap traceable tokens (like ETH or BTC) into harder-to-track assets (like USDT on Tron, or privacy coins)
Our job is to:
- Identify and map each hop and swap
- Pinpoint where funds change format, destination chain, or recipient wallet
- Flag common laundering behaviors (e.g., sudden chain-hops after a high-risk transaction)
Entity Attribution: The KYC Goldmine
The key moment in every case? When the funds hit a centralized exchange (CEX).
That’s where criminals must exchange crypto for fiat or send funds to KYC’d wallets. These are the pressure points that investigators can exploit.
We leverage:
- Wallet clustering: grouping wallets controlled by the same user
- Gas usage and address fingerprinting patterns
- Subpoena-friendly relationships with compliant exchanges
Once they hit a CEX, the mask slips—and we’re ready.
Geolocation and Behavioral Profiling
Even when identities are hidden, behavior speaks volumes.
By analyzing transaction times, asset preferences, and usage patterns, we can estimate:
- Time zone alignment based on activity timestamps
- Token behavior (e.g., consistently preferring BNB Chain, or Tron-based USDT)
- Off-chain clues, including leaked IP data or mobile wallet behaviors
In many cases, this helps us triangulate jurisdiction, which is critical for legal escalation and coordinated takedowns.
AI-Powered Pattern Recognition
BlockDivers leverages AI and machine learning to supercharge our work:
- Suspicious clustering algorithms detect related wallets
- Behavioral models flag deviations from normal transaction flows
- Visual graph tools map out complex transaction webs—across 5, 10, or 20+ hops
When the human mind can’t keep up, our machines carry the load. It’s not just about watching addresses—it’s about understanding intent.
Freeze the Exit
When the funds land at a centralized exchange or payment processor, we act fast.
Our playbook includes:
- Legal coordination: We partner with law firms to issue subpoenas and preservation orders
- AML escalation: We notify exchanges and compliance teams before assets are withdrawn
- Law enforcement support: We provide clean, visual, court-ready evidence packs to help seize or freeze assets globally
The endgame isn’t just tracing—it’s recovery.
Real-World Case Snapshot (Anonymized)
In a recent case, our client lost ~$95,000 in a wallet-draining scam involving a fake staking dApp. Within hours, funds were funneled through 4 wallets, bridged from Ethereum to Tron, swapped into USDT, and routed through a cluster of high-risk addresses.
We:
- Identified 3 suspect wallets that received portions of the laundered funds
- Traced one final hop to Binance
- Submitted a KYC request and legal evidence to initiate account freeze
The client’s counsel is now working directly with Binance’s legal team, and recovery proceedings are underway.
Conclusion
Criminals believe cross-chain means untraceable. They’re wrong.
At BlockDivers, we specialize in tracking the untrackable—hopping across chains, breaking through mixers, and following the trail until it ends in a courtroom, a seized wallet, or a returned asset.
If you’ve been the victim of crypto fraud or suspect your organization is exposed to blockchain-based risk, reach out. We chase shadows—so you don’t have to.
