Sticky Notes to Seed Phrases: How To Identify Crypto Artifacts in the Field

In an era where digital assets are increasingly intertwined with criminal activities, law enforcement agencies must adapt to the complexities introduced by cryptocurrency and its associated artifacts. As cryptocurrency transactions can take numerous forms and be hidden in various ways, it becomes essential for officers to recognize potential crypto evidence in their investigations. This article will explore the definition of crypto artifacts, common examples, best practices for evidence collection, and the tools available to assist law enforcement in this rapidly evolving digital landscape.

What Are Crypto Artifacts and Why Do They Matter?

Crypto artifacts refer to the myriad physical and digital markers indicating the usage or ownership of cryptocurrency. Unlike traditional assets, cryptocurrencies can be stored on various devices and platforms. This means that key evidence may not always conform to the expectations of investigators who do not specialize in this arena.

According to experts Chris Janczewski and Chris Wong, who led a recent webinar for law enforcement professionals, recognizing these artifacts is crucial. They emphasize that even mundane items like sticky notes or laptop labels can be invaluable in unraveling complex investigations. The importance of identifying these artifacts cannot be overstated, as they are often critical in cases involving financial crimes, fraud, or other illegal activities.

Common Types of Crypto Artifacts Found in the Field

Several common crypto artifacts have been identified that law enforcement may encounter:

1. Hardware Wallets: These are physical devices, often resembling USB sticks, that store the private keys necessary for accessing crypto assets. Popular brands include Ledger, Trezor, and SafePal.

2. Seed Phrases: A seed phrase is a sequence of 12 to 24 words that can regenerate a crypto wallet. Officers may find these written down, stored in password managers, or even saved as digital notes.

3. Mobile and Desktop Applications: Cryptocurrencies can be managed through apps installed on smartphones, laptops, or temporary devices used for single transactions.

4. QR Codes: Often found on printed papers, whiteboards, or even clothing, QR codes can link back to wallet addresses or payment requests.

5. Notes and Receipts: Documents such as transaction memos, screenshots, exchange deposit confirmations, or shipping labels can serve as crucial leads.

A useful tip for officers discovering crypto artifacts is to photograph everything before attempting to interpret or seize items. Preservation of evidence is vital, as the significance of artifacts may become clearer later in the investigative process.

Field Tactics for Securing Digital Evidence

Janczewski and Wong shared insights into effective field tactics for collecting digital evidence. Missed opportunities for capturing significant artifacts can hinder an investigation, and best practices include:

• Photograph Everything: Capture images of all digital screens and handwritten materials before collecting devices or documents.

• Look for Hidden Items: Investigators should not overlook small or unusual items, such as USB drives concealed in everyday objects like deodorant sticks or toys.

• Label and Log Devices Accurately: When seizing a device, officers should note whether it was powered on, connected to the internet, or encrypted.

• Treat Cryptocurrency Like Cash: Given its value and the potential for illicit use, approaching cryptocurrency with the same caution as cash can improve the effectiveness of an investigation.

• Consider Multiple Locations for Seed Phrases: It’s essential to realize that seed phrases and access mechanisms may be dispersed across different locations, complicating evidence collection.

Utilizing TRM’s Tools for Law Enforcement

TRM Labs offers a robust blockchain intelligence platform that aids law enforcement professionals in tracing cryptocurrency transactions effectively. Key features of TRM’s offerings include:

• TRM Triage: This tool allows investigators to search for crypto artifacts using their mobile devices. By simply capturing a photo of an artifact like a QR code or receipt, officers can instantly access balance information, transaction history, and associated threat categories.

• Seed Analysis: Quickly translates seed phrases and xPubs (extended public keys) into actionable insights across multiple blockchains, revealing linked wallets, transactions, and assets.

• TRM Forensics: This feature helps investigators visualize cryptocurrency flows across blockchains and links wallets to real-world services, producing court-ready visuals that can bolster legal actions such as subpoenas and asset freezes.

TRM’s tools are designed with time-sensitive operations in mind, delivering critical support in real-time to disrupt illicit cryptocurrency activity.

Improving Frontline Crypto Readiness

The webinar concluded with tangible advice for law enforcement personnel seeking to enhance their readiness in dealing with cryptocurrency. Key recommendations include:

• Education and Training: Investing in training programs helps officers recognize common crypto artifacts and escalates issues to specialized digital units when required.

• Coordinate with Specialists: Involve digital evidence specialists whenever cryptocurrency usage is suspected, further bolstering investigative strategies.

• Diligent Documentation: Keeping detailed records of findings can aid later analysis and prosecution.

• Continuous Learning: Platforms like TRM Academy offer ongoing education opportunities to help law enforcement professionals upskill in the dynamic field of digital currencies.

As Wong eloquently put it, “If we help an officer identify a single wallet in the field, we can potentially stop an entire laundering operation from succeeding.”

Conclusion

In conclusion, cryptocurrency presents both challenges and opportunities for law enforcement. By understanding what crypto artifacts are and how to identify and preserve them, officers can significantly enhance their investigative capabilities. Tools like TRM’s blockchain intelligence platform facilitate the complex process of tracing digital assets, making it easier for law enforcement to stay ahead of illicit activities. By enhancing their knowledge and readiness, law enforcement agencies can effectively tackle the evolving landscape of financial crime associated with cryptocurrencies.

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