Cryptocurrency Wallet Forensics: Complete Investigation Guide

Cryptocurrency wallet forensics is essential for law enforcement and investigators. Learn how to extract wallet data, recover private keys, and trace stolen assets across blockchains.

Understanding Wallet Forensics

Wallet forensics involves extracting and analyzing cryptocurrency wallet data from devices, recovering private keys, and tracing transactions to identify suspects and recover stolen funds.

Types of Cryptocurrency Wallets

Software Wallets

• Mobile Wallets - Trust Wallet, MetaMask Mobile, Coinbase Wallet
• Desktop Wallets - Electrum, Exodus, Atomic Wallet
• Web Wallets - MetaMask Extension, MyEtherWallet

Hardware Wallets

• Ledger - Nano S, Nano X
• Trezor - Model One, Model T
• KeepKey - USB hardware wallet

Investigation Methodology

1. Device Acquisition

Create forensic images of suspect devices to preserve evidence:

• Use write-blockers to prevent data modification
• Create bit-by-bit copies of storage media
• Document chain of custody
• Verify image integrity with hash values

2. Wallet Data Extraction

Extract wallet artifacts from mobile devices:

• Android - /data/data/[app_package]/files/
• iOS - /var/mobile/Containers/Data/Application/
• Encrypted keystores and seed phrases
• Transaction history and address books

3. Private Key Recovery

Techniques for recovering private keys:

• Memory Forensics - Extract keys from RAM dumps
• Keystore Decryption - Brute force wallet passwords
• Seed Phrase Recovery - Find mnemonic backups
• Browser Cache Analysis - Extract web wallet data

4. Transaction Tracing

Trace transactions from recovered wallets:

• Identify all addresses controlled by the wallet
• Map transaction history and counterparties
• Cluster related addresses using heuristics
• Track funds through exchanges and mixers

Mobile Wallet Forensics

Trust Wallet Analysis

Trust Wallet stores data in encrypted format:

• Keystore files in app-specific directory
• Encrypted with device PIN or biometric
• Transaction cache in SQLite database
• Address book and token lists

MetaMask Mobile Analysis

MetaMask uses encrypted vault storage:

• Vault encrypted with user password
• Seed phrase stored in encrypted vault
• Transaction history synced from blockchain
• Custom RPC endpoints and network configs

Hardware Wallet Forensics

Hardware wallets present unique challenges:

• Private keys never leave the device
• PIN protection with limited attempts
• Seed phrase backup on recovery card
• Transaction signing requires physical confirmation

Investigation Strategies

• Search for recovery seed backups
• Analyze transaction history from blockchain
• Identify associated exchange accounts
• Trace funds to known addresses

Address Attribution Techniques

KYC Data from Exchanges

Obtain user information through legal process:

• Subpoena exchange for account details
• Link blockchain addresses to verified identities
• Access transaction history and IP logs
• Identify deposit and withdrawal patterns

OSINT Investigation

Use open-source intelligence to identify wallet owners:

• Search addresses on social media and forums
• Analyze ENS domains and NFT ownership
• Track donations and public transactions
• Correlate with known criminal activity

Real-World Case Study

In 2024, investigators recovered $2M in stolen cryptocurrency:

• Seized suspect's phone with Trust Wallet installed
• Extracted encrypted keystore from device
• Recovered password from browser autofill
• Traced funds to multiple exchanges
• Froze accounts and recovered 80% of stolen assets

Best Practices for Investigators

• Always create forensic images before analysis
• Document every step of the investigation
• Use specialized tools for wallet extraction
• Maintain chain of custody for evidence
• Coordinate with exchanges for account freezes
• Stay updated on new wallet technologies

ForensicBlock Wallet Tools

ForensicBlock provides specialized tools for wallet forensics:

• Wallet Profiler - Analyze wallet behavior and patterns
• Address Clustering - Group related addresses
• Transaction Tracer - Follow fund flows
• Exchange Identifier - Detect exchange deposits

Conclusion

Cryptocurrency wallet forensics is a critical skill for modern investigators. With the right tools and techniques, law enforcement can successfully trace stolen funds and bring criminals to justice.