Cryptocurrency - Not Just Physical Assets Require Recovery in Investigations

60-minute Webcast Highlighted

• The infrastructure cryptocurrency requires to function: wallets, exchanges, blockchains
• The different types of businesses that deal in cryptocurrency
• Insolvency scenario of a business that needed cryptocurrency to be traced and recovered
• A recent case study, covering tracing methodologies and recovery mechanisms

Speakers

• Andrew Whelan, Associate Managing Director, Kroll
• Marek Mirecki, Director, Kroll
• Hugo Hoyland, Director, Kroll
• Peter Stevens, UK President, TMA

Notable Passages from During the Webcast

What is Cryptocurrency?

“Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency and immutability. The most important feature of a cryptocurrency is that it is not controlled by any central authority—the decentralized nature of the blockchain makes cryptocurrencies theoretically immune to government control and interference.” – Marek Mirecki.

Recovering Cryptocurrency in Investigations

“How cryptocurrency is stored, is the key to understanding the recovery mechanisms that can be employed. Cryptocurrency is accessed with the use of a ‘private key,’ a sophisticated form of cryptography. This private key can be kept in many forms and while it’s possible to create one’s own custody solution, it’s often easier to use a custody provider. Many cryptocurrency users, however, do not store their private key safely and Kroll has heard examples of people keeping the details of their key on a USB stick in a desk drawer. If the key represents £50 million this is not secure.” – Hugo Hoyland.

Key Properties of Cryptocurrency

“The crypto market is made up of over 5,000 cryptocurrencies with a total market valuation of around $250 billion. It’s a growing market that’s becoming increasingly mainstream with online retailers, charities, institutional investors and banks using it. For example, you can now purchase a car from Tesla, donate to Save the Children, or buy content for your games console with bitcoin.” – Marek Mirecki.

Originally published on TMA on December 2, 2020.

Read the full article here.