Payments on the blockchain are publicly visible - but they do not reveal who is behind a wallet. What tracking can achieve, what role regulated crypto exchanges play and what the limits are.
Anyone who has lost Bitcoin or other crypto assets through fraud often hears two opposing statements: Cryptocurrencies are completely anonymous and the money is therefore untraceable - or every transaction is saved forever and the perpetrators can be easily identified. Neither applies in this form.
The reality lies in between. The path of crypto assets can often be followed for a long time. The more difficult question is who is behind an address and whether this results in an enforceable claim.
Publicly visible but pseudonymous
With most popular cryptocurrencies, transactions are stored in a public ledger, the blockchain. Every transfer is permanently recorded there with the sender address, recipient address, amount and time and can be viewed via freely accessible blockchain explorers.
This register does not contain names. A wallet address is a string that can be generated in any number without proof of identity. This is why we speak of pseudonymity: it is visible that an amount has moved from one address to the next, but not who these addresses belong to.
What tracking can do
Based on the injured party's transaction, it is possible to trace the addresses through which the crypto assets were forwarded. Investigative authorities and specialized service providers use analysis tools that display payment flows and can assign addresses to known services. What is particularly revealing is the point at which the values are received by a crypto exchange or another service provider.
Perpetrators are aware of these possibilities and specifically make the analysis more difficult: amounts are split up, routed via many intermediate addresses, exchanged for other crypto assets or sent via services that conceal payment flows. With each of these steps, the assignment becomes more uncertain, and not every trace leads to a tangible result.
The role of regulated crypto exchanges
Anyone who wants to exchange crypto assets for euros or another national currency usually has to rely on a trading platform. Providers that are regulated in the European Union are subject to anti-money laundering obligations and must identify their customers. If the trail leads to such a provider, there is usually data about the person who opened the recipient account.
However, providers usually do not release this data to private individuals. Information is primarily received by law enforcement authorities, who can also have credit secured while it is still available. That's why a quick criminal complaint and complete transaction data are important. Victims can request access to the investigation file through a lawyer and, if necessary, learn about the findings.
Which data those affected should secure
- Transaction identifiers (transaction ID or hash) of all transfers to the perpetrators
- your own sender address and the recipient addresses, if possible as copyable text and not just as a screenshot
- Date, time, amount and type of crypto asset
- Account statements and transaction overviews from your own crypto exchange as well as receipts for previous purchases with euros
- Chat histories, emails, platform internet addresses and screenshots of the account there
It also makes sense to inform your provider through whom the crypto assets were purchased and sent about the suspicion of fraud.
Legal classification and limits
Legally, there are regular claims for damages against the perpetrators, in particular from Section 823 Paragraph 2 BGB in conjunction with Section 263 StGB and Section 826 BGB. However, they can only be enforced against a person who is known, accessible and has assets. Tracking is therefore not an end in itself: it is a tool for finding starting points for investigations, security measures or claims against identifiable parties involved. Whether the associated effort is worth it depends on the amount of damage, the timing and the identifiable payment method.
Conclusion
Crypto transactions are traceable, but cannot easily be attributed to a person. The best prospects are if the trail leads to a regulated provider with identity verification and the authorities are involved early. A return of values is possible, but by no means certain - that should be said openly. This article provides general information and does not replace legal advice in individual cases.
Frequently asked questions
Yes, the bookings can be accessed in a public blockchain explorer using the transaction ID or the recipient address. You will see the other addresses and amounts there, but not the people behind them. Special analysis tools and experience are usually required for a reliable evaluation.
No, a confirmed transaction on the blockchain cannot technically be canceled. A repatriation requires that the recipient transfers the values back or that credit is secured with a service provider and released later. This only works in some cases.
Usually not immediately, as the providers are bound by data protection and confidentiality obligations. The law enforcement authorities primarily receive information as part of an investigation. If necessary, injured parties can find out about the results by requesting access to the files from a lawyer.
