Preserving Digital Leads: First Steps in Handling Cryptocurrency Information for PIs

Cryptocurrency is now a recurring element in many investigative cases—from hidden assets to online fraud. When it surfaces during an investigation, knowing how to preserve and handle this digital evidence correctly is crucial. A missed step in the early stages can mean lost leads, inadmissible findings, or an unrecoverable money trail.

This guide will walk private investigators through the essential first steps for identifying, documenting, and preserving cryptocurrency information. We’ll also explore when it’s time to call in crypto forensic experts and how to avoid legal and procedural missteps that could compromise your case.

Why Digital Preservation Matters in Crypto Investigations

Unlike physical cash or property, cryptocurrency is:

Easily transferable in seconds
Stored in digital wallets, not banks
Often pseudonymous, making attribution difficult
Logged permanently on a blockchain ledger, but requires interpretation

Handled properly, crypto data can support asset tracing, fraud reconstruction, or legal claims. Mishandled, it may be dismissed or render evidence trails cold. Early, accurate preservation is the difference between actionable intelligence and wasted effort.

Step 1: Identify Potential Cryptocurrency Evidence

Cryptocurrency evidence can show up in a variety of digital or physical forms. Be alert for the following:

Digital Clues:

Wallet addresses: Typically alphanumeric strings (e.g., starting with “1,” “3,” or “bc1” for Bitcoin, “0x” for Ethereum)
QR codes linked to crypto wallets
Exchange transaction IDs (TXID): Used to verify on-chain transactions
Emails or SMS alerts from exchanges (Coinbase, Binance, etc.)
Seed phrases: 12–24 word recovery keys used to regenerate wallets

Physical Clues:

Cold wallets or USB devices (e.g., Ledger, Trezor)
Paper wallets with QR codes or keys written down
Handwritten seed phrases or crypto account logins
Receipts or printouts of crypto purchases or transfers

Step 2: Document Everything Immediately and Accurately

Once crypto data is discovered, it must be documented and preserved as-is. Here’s how:

Photograph or screenshot wallet addresses, seed phrases, QR codes, and dashboards. Include timestamps if possible.
Record the source device or physical location where the evidence was found.
Use hash-checking software when imaging devices or files to maintain forensic integrity.
Log all findings in your case notes, including the date, time, and method of discovery.

Pro Tip: Never move or access a wallet unless you have clear legal authority to do so. Simply capturing the data is enough at this stage.

Step 3: Preserve Access to Original Devices

If a cryptocurrency wallet or app is discovered on a smartphone, laptop, or tablet:

Don’t log out or uninstall the app.
Disable network connections if needed to freeze activity.
Consider creating a forensic image of the device using professional tools.
Secure the device in evidence storage, ideally with chain-of-custody documentation.

Even if you don’t have immediate access to the wallet, preserving the environment may allow forensic experts to recover critical access points, such as cache files, saved credentials, or app logs.

Step 4: Use Public Blockchain Tools to Verify Activity

Wallet addresses can be publicly traced on blockchain explorers such as:

blockchain.com – for Bitcoin
etherscan.io – for Ethereum and ERC-20 tokens
bscscan.com – for Binance Smart Chain

Using these tools, PIs can:

View incoming/outgoing transactions
Identify counterparties (other wallet addresses)
Spot suspicious patterns or links to known scams
Determine the value of funds at time of transfer

Important: Blockchain explorers show public records. There is no legal issue in viewing them, but linking a wallet to a specific person should be done carefully and, when needed, with expert support.

Step 5: Know When to Engage a Crypto Forensics Expert

Not all crypto leads require outside help—but some do. Bring in an expert when:

Wallets contain complex transaction histories across multiple blockchains
You suspect laundering through mixers, DeFi platforms, or privacy coins (like Monero)
A case involves large amounts of funds or potential legal proceedings
There’s a need to subpoena exchanges or match a wallet to a KYC-verified user

Certified crypto forensic analysts use blockchain analytics platforms to visualize transactions, de-anonymize wallet activity, and prepare court-admissible reports. Partnering early can strengthen your case significantly.

Legal and Ethical Considerations

Handling cryptocurrency evidence must always comply with digital privacy and investigation laws. Keep in mind:

You cannot access or move crypto funds without proper legal authority.
Always log your methods and tools used during discovery.
Maintain secure storage for any physical or digital crypto-related evidence.
If acting on behalf of a client, ensure informed consent before analyzing their devices or records.

Tools for Crypto Evidence Preservation

At PI Mall, we support digital investigations with tools that make preservation and analysis more effective:

Digital forensic kits for safe device imaging
Crypto evidence collection templates and forms
Books and training guides on crypto and blockchain investigation
Cold wallet detectors, seed phrase discovery tools, and crypto-tracking worksheets

With the right tools and procedures, any PI can begin preserving crypto evidence with professionalism and confidence.

Handling a case with digital currency? Browse our crypto investigation tools and resources at www.pimall.com.