CFE – Investigation — Question 70

Which of the following is the MOST ACCURATE statement regarding a fraud examiner's ability to trace cryptocurrency transactions?

Answer options

• A. Most cryptocurrencies rely on private blockchains, which make it difficult to obtain visibility into any transaction that takes place.
• B. Each blockchain transaction contains direct identifying information that can be used to track down cryptocurrency users.
• C. Most jurisdictions do not require digital wallet providers to record any personal information about cryptocurrency users.
• D. Information about cryptocurrency ownership can sometimes be revealed through an analysis of a subject's bank statements.

Correct answer: A

Explanation

Option A is correct because private blockchains limit visibility, making it challenging to trace transactions effectively. Option B is incorrect since blockchain transactions generally do not contain personal identifying information. Option C is also wrong as while some jurisdictions may have lax regulations, many do require some form of user identification. Option D, while potentially true, does not address the direct tracing of cryptocurrency transactions as effectively as option A.