Forensic Accounting Methods

Cryptocurrency and crime are increasingly becoming inseparable — and yet, most law enforcement systems around the world are still catching up. Virtual Digital Assets (VDAs) like cryptocurrencies and NFTs pose serious challenges to investigators: pseudonymity, volatility, decentralisation, and complex technological architecture. To meet these challenges head-on, the Centre for Cybercrime Investigation Training & Research (CCITR), CID Karnataka has released a comprehensive manual titled “Investigation of Virtual Digital Assets: A Guide on Cryptocurrency Search, Seizure and Tracing.” This guide lays out the Standard Operating Procedures (SOPs) for safe, lawful, and effective handling of VDAs. It includes step-by-step protocols for setting up controlled wallets, seizing crypto assets, and tracing transactions — all based on real-world case scenarios and investigative needs. In a world where one wrong click can erase millions in assets or taint vital evidence, having a clear, tested SOP isn’t optional — it’s essential. Proud to have contributed to the development of this SOP alongside Manjesh shetty #VirtualAssets #CryptoInvestigation #DigitalForensics #Cybercrime #Cryptocurrency #LawEnforcement #BlockchainInvestigation #DigitalAssets #CCITR #CIDKarnataka #CyberSecurity #CryptoCompliance #SOP #CrimeInvestigation #PublicSafety

Implementing eDiscovery Tools: Best Practices for Success Here are some best practices: Understand Your Needs Data Volume and Complexity: Evaluate the volume and complexity of data you typically handle. This will help determine whether you need a scalable solution like Relativity, capable of handling large datasets, or a more focused tool for smaller, specialized tasks. Case Types: Different cases may require different functionalities, such as advanced analytics for complex litigation or simple data processing for routine matters. IT Infrastructure: Assess the compatibility of potential tools with your existing IT environment, including hardware, software, and security protocols. Choose the Right Tools Document Review Platforms: Tools like Relativity or Everlaw offer robust document review capabilities, including advanced analytics, AI-driven document clustering, and customizable workflows. These tools are ideal for large-scale litigations. Data Collection and Preservation: Forensic tools like FTK Imager or EnCase are essential for precise data collection, ensuring data integrity and defensibility in court. They allow for targeted data collection from various sources, including laptops, mobile devices, and cloud storage. Processing and Analysis: Tools like Nuix or LAW PreDiscovery can process large volumes of data quickly, applying filters, deduplication, and conversion to review-ready formats. Early Case Assessment (ECA): Implement ECA tools like Casepoint to get an overview of your data early in the process, enabling strategic decision-making and cost control. Training and Support Training Programs: Develop comprehensive training programs tailored to your team's roles. User Manuals and Guides: Create or provide access to detailed user manuals, quick reference guides, and video tutorials to assist users in day-to-day operations. Ongoing Support: Ensure that your tool providers offer 24/7 support, including dedicated account managers, technical support hotlines, and regular check-ins to address any challenges promptly. Integration with Existing Systems Document Management Systems (DMS): Ensure your eDiscovery tools integrate smoothly with DMS like iManage or NetDocuments for efficient document transfer and management. Email Platforms: Connect with email systems like Microsoft 365 or G Suite to directly ingest email data, minimizing the risk of loss or mismanagement. Legal Tech Ecosystem: Ensure compatibility with other legal tech tools Regular Updates and Audits Software Updates: Schedule updates to access the latest features, security enhancements, and compliance updates. Performance Audits: Regularly assess tool performance, incorporating user feedback and system metrics to identify and address inefficiencies. Compliance Audits: Ensure your tools consistently meet evolving legal standards and data protection laws. What best practices have you found useful in implementing eDiscovery tools? Comment! #eDiscovery #Ankura

🪙 I've just come across a practical guide published by the Global Investigative Journalism Network (GIJN) on investigating cryptocurrency. Although it was written primarily for investigative journalists, I believe it is equally valuable for professionals working in Anti-Money Laundering (AML) and financial crime compliance. The guide provides a practical overview of topics such as: ▪️ How to trace cryptocurrency transactions across public blockchains. ▪️ Where to find wallet addresses (court records, sanctions lists, regulatory filings, public sources, and more). ▪️ Which blockchain analysis tools can support investigations. ▪️ How to interpret transactions between wallets and centralized exchanges. ▪️ The limitations of blockchain analysis and the importance of validating findings with experts. What makes this guide particularly interesting is its investigative mindset. It demonstrates how blockchain data can be combined with open-source intelligence, public records, and traditional investigative techniques to reconstruct financial flows and uncover hidden connections. Many of the concepts discussed are directly relevant to Crypto AML, transaction investigations, blockchain analytics, and tracing the origin and destination of digital assets. If your work involves AML, financial crime investigations, or digital assets, I think this guide is well worth reading. Have you read it already? Which blockchain investigation tools do you rely on most? Source: https://lnkd.in/et7wyDbq

🗽Today, New York State Department of Financial Services released new guidance urging banks and other covered financial institutions to leverage blockchain analytics like TRM Labs to manage risk tied to digital assets. The guidance, which builds on DFS’s 2022 guidance on blockchain analytics, is classic DFS - concise and straight to the point - making it clear that blockchain analytics should now be part of the compliance toolkit for any bank with customers transacting in digital assets. So what does that look like in practice? DFS lays out a number of ways institutions should be thinking about deploying these tools: 🔍 Screening wallets of customers who have disclosed or engaged in crypto transactions to assess risk exposure ✅ Verifying sources of incoming funds that originate from VASPs 🌐 Monitoring the broader ecosystem to evaluate customer exposure to money laundering, sanctions, or other crimes 🤝 Identifying and assessing third-party risk, including counterparties of customers 📊 Comparing expected vs. actual behavior (like transaction thresholds) of crypto-active customers 📈 Using intelligence from holistic monitoring to refine risk assessments and risk appetite ⚖️ Evaluating risks for new products or services tied to virtual currency activity DFS is careful to emphasize that these are not one-size-fits-all mandates. Each institution is expected to tailor controls to its own risk profile, business model, and operational footprint — and update them regularly as new technologies, customer types, or counterparties emerge. DFS ends with this: "With increasing virtual currency adoption, Covered Institutions play a critical role in safeguarding the integrity of the financial ecosystem to prevent illicit activities like money laundering, terrorist financing, and sanctions evasion." I agree. 

Great guide from Microsoft and Singapore Academy of Law on using AI prompt engineering to harness the power of LLMs. Key takeaways: Prompt Engineering Basics Definition: The practice of formulating instructions to achieve specific outcomes from a generative AI tool. Importance: The effectiveness of AI tools is highly dependent on the quality of the input prompts. Structure of a Good Prompt: (1) Goal: Clear instructions and objectives. (2) Context: Relevant background information, constraints, and parties involved.  (3) Expectations: Desired format, tone, and level of detail.  (4) Source: Reference materials to guide the AI. Good Practices for Lawyers Professionalism: Lawyers are responsible for verifying the accuracy of AI-generated outputs. Copilot, Not Autopilot: AI should assist but not replace a lawyer's expertise. Disclosure: Adhere to firm policies and professional conduct codes regarding the use of AI. Confidentiality: Ensure compliance with data privacy and security policies. Legal Use Cases (Note - looking forward to trying these.) Contract Review and Drafting: Review contracts, draft clauses, and compare against standard templates. Example Prompt: "Please detail how an employee under the following ESOP [insert ESOP document] will receive equity benefits over a 5-year period."  Dispute Resolution: Analyse affidavits and statements of claim to identify inconsistencies. Example Prompt: "Analyse the plaintiff's affidavit against the statement of claim to identify areas of inconsistencies."  Litigation Support: Assist in preparing for litigation, including document review and chronology of events. Example Prompt: "Generate a list of documents that I have to provide to the defendant for a case."  Mergers and Acquisitions: Support due diligence and documentation. Example Prompt: "Analyse the attached contract in the context of the acquisition deal to identify any red flags."  Regulatory Compliance: Obtain explanations of how scenarios fit with policies or laws. Example Prompt: "List out the Rules of Court of Singapore and Supreme Court Practice Directions that would apply to personal service on a defendant."  Client Communication and Billing: Facilitate clear communication with clients and compose narratives for timesheets and billing. Example Prompt: "Summarise the key points from the attached meeting minutes and draft a follow-up email to the client." Solid read - and a lot of this guide reflects the work that we have been doing at Ashurst Advance on various Generative AI tools. #legaltech #digitaleconomy #ashurstadvance #AI #promptengineering

Most people think that once crypto is sent, it’s gone forever. Even many investigators believe that. But here’s the truth: “Irreversible” does not mean “unrecoverable.” The #blockchain records everything. Every transfer, every hop, every attempt to hide. That level of transparency gives investigators a way forward. With the right approach, we can: ✅ Trace where funds move ✅ Follow activity across wallets ✅ Identify when stolen crypto lands on KYC exchanges ✅ Request freezes or subpoenas And yes, there have been real cases where stolen crypto was seized and returned, even years later. I know this because I've done it. So why the misconception? Because we often compare crypto to traditional banking. In traditional finance, you call your bank and hope they reverse the transaction. Crypto doesn’t work through reversals. It works through forensic visibility. Crypto removes the bank, not the evidence. The trail stays on-chain, available to those who know how to read it. Tools like Chainalysis and TRM Labs turn that data into actionable leads. Paired with law enforcement, recovery becomes possible. Here’s the mindset shift we need: 💥 If you work in fraud, compliance, cyber, or investigations, stop thinking “it’s gone.” Start thinking “let’s trace it.” Victims deserve that effort. Investigators deserve the full picture. #Crypto may not be reversible, but it’s far from hopeless. It simply requires a different playbook. Let’s start using it. 🦸🏿♂️ #Stopthescam Fraud Hero #Bitcoin #cryptocurrency #fraud #scam #fraudprevention

Quick summary of our work into mapping the operational footprint of Coinomize, one of the longest-running Bitcoin mixers. We've been tracking changes in their infrastructure and obfuscation strategies over time, starting from cross-chain centralized swaps using Trezor wallet in the early days, through to swaps via eXch and Binance deposits, through to today where they rely heavily on THORChain and ShapeShift. This on-chain forensics work combined with some propietary OSINT has led Caudena to quite a unique view of Coinomize's operations. If you're in law enforcement and keen to learn more, my inbox is open 📥

𝑰𝒏 𝒂 𝒓𝒆𝒄𝒆𝒏𝒕 𝒄𝒂𝒔𝒆, 𝒂 𝒑𝒓𝒊𝒗𝒂𝒕𝒆 𝒆𝒒𝒖𝒊𝒕𝒚-𝒃𝒂𝒄𝒌𝒆𝒅 𝒄𝒐𝒎𝒑𝒂𝒏𝒚 𝒇𝒂𝒄𝒆𝒅 𝒂 𝒕𝒂𝒙 𝒅𝒆𝒎𝒂𝒏𝒅 𝒐𝒇 ₹8.7 𝒄𝒓𝒐𝒓𝒆 𝒅𝒖𝒆 𝒕𝒐 𝒂𝒍𝒍𝒆𝒈𝒆𝒅 𝒊𝒏𝒄𝒐𝒓𝒓𝒆𝒄𝒕 𝒄𝒍𝒂𝒔𝒔𝒊𝒇𝒊𝒄𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒓𝒆𝒗𝒆𝒏𝒖𝒆 𝒗𝒔 𝒄𝒂𝒑𝒊𝒕𝒂𝒍 𝒓𝒆𝒄𝒆𝒊𝒑𝒕𝒔. The catch? They had documentation, they had technical clarity, but they lacked legal strategy. They approached me after the first appeal was dismissed — and the department had a watertight case simply because their paperwork told a better story. In tax litigation, it’s not always about what you did — it’s about how you present what you did. Here’s where legal representation makes a real difference: -Crafting your reply to an SCN in a way that matches judicial reasoning -Citing precedents the department can’t ignore -Framing grounds of appeal to keep options open for tribunal or higher court -Appearing in hearings with clarity, confidence, and a long-term litigation lens The cost of not hiring a tax lawyer early isn’t always legal fees — it’s opportunity lost, positions weakened, and recoveries delayed. Whether it’s Income Tax, GST, or legacy Service Tax cases, timely legal support doesn’t just defend your case — it protects your bottom line. #mohitgupta #taxlitigation #gst #incometax #corporatelaw #itat

I watched a $400/hour attorney spend Saturday night doing $15/hour work. And this is why her firm is struggling to grow. Your case manager is the one who keeps the train running. They handle client updates, deposition prep, calendar management, communication protocols, and so much more. The second they disappear into a mountain of PDFs, every other part of your file starts to slip. They don’t have time to be thinking about witness prep, client communication, or the hot docs that could win the case. Instead, they’re fixated on how many hours of sleep they are about to lose. This is the moment most litigation firms break. But you can help them. Separate the review from the strategy. A remote document review team handles the first pass. They work in batches through a secure portal, tagging notes directly to the documents so nothing has to be hunted for later. Your case manager stays on the strategy. They read the summaries. Connect the dots. Flag the gaps. Make sure the lead attorney walks into trial prep with a clean, organised file instead of a digital mess. And if this is set up correctly, it can change a lot in your firm. What would have taken four months gets done in six weeks. Each case manager regains 20 hours per week. And the hot doc folders become exceptionally well-vetted. The firms that scale high-volume discovery are the ones that stopped forcing their best people to do work a trained specialist could handle better and faster. We broke down exactly when to bring in remote document review support, and how to structure the collaboration so nothing falls through the cracks, in our latest article. Read the full breakdown here: https://lnkd.in/eHUhipy7

Crypto Sleuths Help Crack North Korea’s $1.5 Billion Blockchain Heist Introduction: The Largest Crypto Theft in History In late February 2025, the world witnessed the biggest cryptocurrency heist ever recorded—$1.5 billion in digital assets vanished within minutes from Bybit, a Dubai-based exchange. The audacious attack was later linked to North Korea’s notorious Lazarus Group. Behind the scenes, a group of digital crimefighters at TRM Labs worked with global law enforcement to trace the stolen funds, offering a glimpse into the high-stakes world of blockchain forensics. Key Details: How the Digital Trail Was Tracked • The Hack Exploiting vulnerabilities in Bybit’s systems, hackers siphoned $1.5 billion worth of crypto assets. The speed and scale of the heist shocked the crypto world and immediately raised suspicions of state-level involvement. • Immediate Response Bybit’s security team moved swiftly, involving the FBI and private sector specialists including TRM Labs—a San Francisco-based blockchain intelligence firm known for tracking illicit crypto activity worldwide. • TRM Labs’ Role From the first moments of the breach, TRM’s analysts helped trace stolen assets across decentralized networks. With roughly 300 experts, the company leverages blockchain analysis to investigate fraud, money laundering, and state-sponsored cyberattacks. • North Korea’s Involvement Confirmed The hack was ultimately attributed to the Lazarus Group, a well-known North Korean cybercriminal unit tied to previous high-profile attacks, including the infamous 2014 Sony Pictures breach. Why It Matters: A New Era of Cyber Warfare and Financial Crime • State-Sponsored Theft at Scale The Lazarus Group’s involvement underscores how nation-states are now exploiting cryptocurrency’s anonymity and global reach to fund rogue operations and bypass sanctions. • Blockchain’s Double-Edged Sword While crypto transactions are designed to be decentralized and secure, they’re also traceable. Companies like TRM Labs demonstrate how transparency in blockchain can be used to fight crime. • Public-Private Partnerships Work The success of the investigation reflects the critical role of collaboration between exchanges, tech firms, and law enforcement in countering digital financial threats. • Ongoing Threat Landscape Despite partial fund recovery efforts still underway, the scale of the heist signals that crypto platforms must continually adapt to increasingly sophisticated threats. Conclusion The Bybit heist is a turning point in cybercrime history—revealing both the vulnerabilities of global crypto infrastructure and the growing strength of digital crime fighters. As North Korea and other actors weaponize cyberspace for financial gain, companies like TRM Labs are proving that even in the decentralized world of blockchain, criminals can’t truly hide. Keith King https://lnkd.in/gHPvUttw