Must-Have Blockchain Analytics Features For Masterful Cryptocurrency Investigations: QLUE™

Cryptocurrency investigations present unique challenges due to the decentralized nature of blockchain technology and the sophistication of criminal activities. Investigators must apply specific forensic techniques and analytical methods to successfully understand, track and investigate cryptocurrency activities. Though it’s a relatively new area of law enforcement, its importance has grown significantly due to the increasing use of cryptocurrencies — especially in illicit activities.

A study by Triple-A shows that the number of cryptocurrency owners has reached 562 million in 2024, up 33% from 420 million in 2023. Meanwhile, scams and fraud led to $5.6 billion in losses, according to the FBI’s 2023 Cryptocurrency Fraud Report. These studies confirm that the digital assets industry is more than a niche segment of global finance and so is the risk involved. 

Bitcoin, Ethereum and many altcoins offer numerous benefits. However, they also present new challenges, especially for law enforcement agencies. Criminals have already adapted to using cryptocurrencies for illegal activities such as money laundering, drug trafficking and ransomware attacks. 

Investigators are tasked with interfering to uncover illicit activities involving blockchain transactions and to protect this new asset class. This is where traditional means fall short, and the reliance on specialized blockchain analytics tools becomes essential. QLUE™ is the leading blockchain analytics tool preferred by government and law enforcement investigators for tackling nefarious activities involving cryptocurrencies. 

QLUE™ enables law enforcement investigators to track and trace blockchain transactions, and scan vast datasets for risk and suspicious activities efficiently and quickly. It retrieves transaction data directly from the blockchain, providing investigators with live, up-to-date insights on target entities and cryptocurrency addresses. 

Key Features of QLUE™

Tracking down illicit activities involving cryptocurrency transactions is tough with various coins and blockchains to navigate. In addition, criminals continuously seek new ways to hinder investigators from following their trace. From creating numerous transaction hops to distributing criminal proceeds to multiple relay and consolidation cryptocurrency addresses, finding clues can be like searching for a needle in a haystack. 

QLUE™ offers a number of advanced features, developed by former U.S. law enforcement and compliance experts, specifically to address the most common challenges investigators face during cryptocurrency investigations.

Here is a closer look at the powerful capabilities investigators harness with QLUE™.

Multi-Blockchain and Cross-chain Investigation

Criminals often exploit the fact that different cryptocurrencies, like Bitcoin and Ethereum, operate on separate blockchains by moving assets across these networks to cover their tracks. For instance, a criminal might convert Bitcoin to Ethereum using a digital assets exchange or decentralized application (dApp)to make it harder to trace the funds. 

These cross-chain movements add layers of complexity, requiring investigators to manually inspect multiple blockchains and link transactions to a single entity. 

QLUE™ streamlines this process by supporting multiple blockchains within a single platform. Instead of jumping between various tools or systems to track activities on Bitcoin, Ethereum, or other blockchains, and missing hidden links, investigators can analyze all the transactions in one place. 

For example, if a suspect moves assets from Bitcoin to Ethereum and then to another blockchain, QLUE™ will show these movements clearly, allowing investigators to track and connect the dots across different blockchain networks. This comprehensive approach saves time and ensures no critical details or patterns are missed.

Visualization Tools

Blockchain transactions can be overwhelming, particularly when criminals try to conceal their activities by dividing transactions into smaller sums or transferring funds between different addresses. It can be difficult and perhaps impossible to try to manually put together this web of transactions by looking at raw data. Criminals rely on such techniques to obscure the trail of funds stolen or obtained illegally.

QLUE™’s visualization capabilities negate the efforts of criminals by converting large volumes of blockchain data into comprehensible visual maps. For instance, in fraud investigations,  QLUE™ can create a graphic flowchart tracking the stolen funds from the defrauded entity and demonstrate precisely where the money went, who received it, and how it was divided across multiple wallets.

Visualization helps spot patterns, including money being split up or sent through multiple addresses to conceal its origin. As QLUE™ presents the data visually, investigators may quickly identify links and dubious activity that they could otherwise miss in the sea of information, making it easier to build a strong case.

Transaction Risk Scoring

Not all blockchain transactions are suspicious, which can make it difficult for investigators to know where to focus their efforts. Criminals often mix their illicit transactions with normal, everyday transfers to avoid detection during money laundering schemes.

QLUE™ addresses this challenge with its risk scoring system, which automatically assigns a risk level to each transaction or wallet. 

If a wallet has been involved in transactions with known untrusted entities or high-risk services like dark web markets, QLUE™ assigns it a higher risk score. Investigators can use this feature to quickly identify which transactions are more likely to be part of illegal activities.

This risk scoring system enables investigators to better allocate their time and resources, and focus on the most critical investigation paths.

Address Attribution

All entities on the blockchain are identified by a hash identification string, be it a virtual assets exchange, a personal wallet, or a smart contract. Identifying the person or organization behind a transaction can be difficult, as criminals often use anonymous wallets or aliases to hide their identities. They may move funds through multiple wallets or use sanctioned services like mixers and exchanges to obscure their tracks without a visible clue.

QLUE™ helps by linking blockchain activity to known and identified real-world individuals or organizations. For example, if you’re tracking a series of transactions known to be connected to a dark web marketplace, QLUE™ utilizes a database carefully validated by our research engineers to flag the addresses involved with relevant key information, including involvement in sanctioned activities or dark web illicit trades.

Address Watch Real-Time Notification

Timing is critical in blockchain investigations because criminals can quickly move funds to cover their tracks. If you’re not able to act swiftly, valuable evidence could be lost, or funds could disappear off-ramp and be hard to trace. Criminals often use this speed to their advantage, making it challenging for investigators to keep up.

QLUE™’s Address Watch feature tackles this by providing real-time data analysis, allowing investigators to monitor transactions as they happen. Should a new transaction occur when watching a suspect’s wallet, QLUE™ will immediately send a notification. 

This real-time alert enables investigators to act quickly, whether that means freezing assets, informing other law enforcement agencies, or gathering evidence while the trail is still fresh. By staying ahead of the criminal’s movements, you can prevent further illegal activity and improve the chances of recovering stolen funds before they move to new addresses.

Reporting and Building Case Files

After conducting your investigation, it’s crucial to compile your findings into a comprehensive report that can be used in legal proceedings or for further analysis. QLUE™ simplifies this process by allowing you to generate detailed reports based on its analysis. These reports can include the flow of funds, linked entities, risk scores and visual maps of transactions.

If you’re preparing a case for court, you can count on QLUE™ to generate the necessary reports for you that outline the evidence you’ve gathered, including transaction amounts and addresses along with visualizations that make it easy for others to understand the complexities of the case. 

QLUE™ is designed to bridge the gap between traditional investigative techniques and the unique demands of cryptocurrency investigations. It empowers governments and investigators against the modern risks introduced by blockchain transactions. 

Whether you’re dealing with a simple case of fraud or a sophisticated operation spanning multiple cryptocurrencies and networks, QLUE™ provides the insights and analysis you need to be one step ahead of criminals at all times.

Use QLUE™ in your cryptocurrency investigations today and start closing cases swiftly and efficiently.