Article Info
Forensic Analysis of Cryptocurrencies: A Comprehensive Overview
Noor Hazfalinda Hamzah, Khairul Osman, Qi Wei Kong, Atikah Mohd Nasir, Nur Mahiza Md Isa,
dx.doi.org/10.17576/apjitm-2025-1402-15
Abstract
The rapid proliferation of cryptocurrencies has revolutionised digital transactions, but their pseudonymous nature poses significant challenges for forensic investigations of illicit activities like money laundering and fraud. While blockchain?s transparency enables transaction tracing, advanced obfuscation techniques (e.g., mixers, privacy coins) and the lack of standardised forensic protocols hinder law enforcement efforts. This study systematically reviews current blockchain forensic tools (e.g., Chainalysis, Elliptic) and analysis techniques (heuristic clustering, AI-driven anomaly detection) to evaluate their efficacy across the forensic investigation lifecycle: identification, preservation, analysis, and presentation. We identify critical gaps in addressing privacy-enhanced cryptocurrencies and inconsistent admissibility of digital evidence in court. By synthesising these findings, we propose actionable recommendations for developing a unified forensic framework that integrates technical robustness with legal compliance, ensuring reliable evidence for prosecution. Our analysis underscores the urgent need for international collaboration and regulatory alignment to combat evolving cryptocurrency-related crimes. This paper contributes by synthesising existing methods, identifying gaps, and proposing a unified forensic framework suitable for judicial contexts.
keyword
Cryptocurrency Forensics, Blockchain Analysis, Digital Currency Investigations, Bitcoin Forensics, Ethereum Tracing