Thu, Dec 3, 2020
In a recent webcast in partnership with the Turnaround Management Association (TMA), speakers from Kroll’s Crypto Compliance and Investigations team explained what cryptocurrency is, how it works, and how it can be misappropriated and require recovery during an investigation.
60-minute Webcast Highlighted
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.
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