A very high-profile court case involving cryptocurrencies is currently happening in Canada. No, we’re not talking about QuadrigaCX, the exchange which has lost all its funds after its owner died and took the private keys to the clients’ funds with him. This time, we’re talking about a case of Bitcoin being used for illicit transactions.
The case, which is calling the attention of the Bitcoin community in Canada, has seen the David Jevans, the CEO of CipherTrace, a blockchain forensics company, to the stand to be a Bitcoin expert witness.
CipherTrace was deeply involved in the seizure of $1.4 million USD worth of BTC which may have been used for illicit practices. The company was pivotal in order to convict a suspect that was accused of using 288 BTC (around $1.4 million USD today) to purchase an illegal handgun and several illicit drugs in the dark web.
The dark web, in case you are not familiar with the dark, is a part of the internet which is outside of the major channels and can only be accessed with special privacy browsers like Tor. There is a big black market in this part of the web, which is where the suspect used the money.
Now, the CEO of the company has been called to the stand as a witness for this process. Basically, he will explain how the company was able to be certain that the money that was used in the transactions came from the defendant’s crypto wallet.
Jevans has affirmed that even if he knew nothing of the case, just by looking at the data and the Bitcoin addresses which were presented in court, his analysis would indicate that the man accused of buying the drugs was guilty.
The situation of the defendant really does not look good at all, really, as the Canadian police have discovered around $2.5 million USD worth of illegal narcotics and other drug trafficking items within his possession.
At the moment, the legal courts are confiscating the property of the defendant and he is trying to defend himself by arguing that he is not guilty.
The Importance of Groups Like CipherTrace
After cases like this one, it is clear how important groups like CipherTrace actually are and how they will surely play a big role in future cyber crimes. The lead investigator of the case, Detective Dwayne King, has affirmed that he would have loved to have access to these tools in the past.
According to him, not having the support of the company in May 2015, when the investigation was started, prevented him from understanding better how to crack the case.
In fact, this is one of Bitcoin’s greatest advantages: its transparency. With the right tools and personnel, you can track whatever you want in the Bitcoin network and this can help the police a lot in cases like this one.
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Maybe they were first in Canada, but I testified in a case in 2018 and am the first U.S. expert qualified in court to testify on bitcoin asset and cryptocurrency tracing. I didn't need special tools other than financial forensics skills and neither does anyone else trying to trace cryptocurrency or identify concealed assets. Cryptocurrency investigations require investigative skills first and foremost. I provide training to law enforcement and other investigators for free and I don't conceal the methods I use for finding evidence of cryptocurrency behind large fees. Be wary of any firm or so-called expert who does.