Crypto Scammers Use Complex Patterns to Launder Stolen Funds

Investigations into crypto investment scams have revealed a common pattern of deception and financial manipulation. Scammers often begin by establishing trust with victims through chat applications, introducing supposed investment opportunities that gradually escalate to larger requests for money.

The funds are then laundered through a sequence of wallets, swap services, bridges, stablecoin routes, and virtual asset service providers, making it difficult to track the stolen assets. Analysts must reconstruct the chronology of transactions, identify wallet behavior, and determine who appears to have controlled the receiving wallet.

A key aspect of these investigations is the 'flow-of-funds analysis,' which involves tracing the movement of value from the victim's wallet through subsequent hops, identifying exchange exposure, and assessing service attribution. This analysis also helps investigators determine whether any point in the chain may support preservation requests or freezing requests where legally and operationally available.

Investigators examine the transaction pattern to identify signs of laundering infrastructure, such as automation, operational discipline, or pre-arranged laundering infrastructure. They look for round amounts, test payments, split transfers, escalating deposits, structured withdrawals, rapid conversion into stablecoins, and fragmentation across multiple wallets.