Safeguarding the Evidential Value of Forensic Cryptocurrency\n Investigations

Abstract

Analyzing cryptocurrency payment flows has become a key forensic method in\nlaw enforcement and is nowadays used to investigate a wide spectrum of criminal\nactivities. However, despite its widespread adoption, the evidential value of\nobtained findings in court is still largely unclear. In this paper, we focus on\nthe key ingredients of modern cryptocurrency analytics techniques, which are\nclustering heuristics and attribution tags. We identify internationally\naccepted standards and rules for substantiating suspicions and providing\nevidence in court and project them onto current cryptocurrency forensics\npractices. By providing an empirical analysis of CoinJoin transactions, we\nillustrate possible sources of misinterpretation in algorithmic clustering\nheuristics. Eventually, we derive a set of legal key requirements and translate\nthem into a technical data sharing framework that fosters compliance with\nexisting legal and technical standards in the realm of cryptocurrency\nforensics. Integrating the proposed framework in modern cryptocurrency\nanalytics tools could allow more efficient and effective investigations, while\nsafeguarding the evidential value of the analysis and the fundamental rights of\naffected persons.\n