Uncovering Hidden Crypto Assets: The Challenges of Financial Infidelity in Divorce

Financial infidelity involving cryptocurrencies and metaverse properties has become more sophisticated.

Spouses may hide cryptocurrency assets during divorce proceedings, making it challenging to uncover them.

The law is struggling to keep up with the complexities of digital assets and their storage outside centralized intermediaries.

Forensic investigators specialize in tracking down hidden crypto assets and analyzing blockchain transactions.

Tech-savvy spouses can easily conceal their cryptocurrency holdings, as they are not regulated by centralized banks.

Privacy tokens like monero can be challenging to trace and de-anonymize, posing difficulties for investigators.

Crypto assets stored in hardware wallets or offline (cold storage) are harder to seize but can still be traced on the blockchain.

Divorce attorneys request preservation of assets, including computer hard drives, to trace crypto transactions.

Public keys on the blockchain provide transaction history and can be obtained during the discovery process.

Advanced techniques, such as analyzing on/off-ramps and tracking fund flows, help uncover hidden assets and uncover obfuscation techniques.