Blockchain and Cryptocurrency Forensics for the Darknet

Abstract

This chapter explores the role of blockchain and cryptocurrency forensics in investigating Darknet-enabled cybercrime. Cryptocurrencies such as Bitcoin and privacy-focused coins are widely used in Darknet marketplaces because they support pseudonymous transactions that complicate tracing and attribution. The chapter examines forensic techniques for blockchain analysis, including address clustering, transaction graph analysis, and heuristic-based tracing. It also explains how illicit financial flows are concealed through mixers, tumblers, and chain-hopping strategies. In addition, the chapter reviews analytics tools used by law enforcement and cybersecurity professionals to detect suspicious patterns and link wallets to entities. Challenges related to privacy-enhancing cryptocurrencies, blockchain scalability, and legal considerations are discussed. Finally, emerging threats involving decentralized finance (DeFi) and cross-chain transactions are explored to provide researchers, forensic analysts, and policymakers with insights into illicit financial activity in the Darknet ecosystem.