Cryptocurrency tracing is the analysis of publicly recorded blockchain activity to follow funds between addresses and identify patterns or possible links. Investigators may examine transaction amounts, timing, and the movement of funds through multiple addresses or services. A blockchain address is not automatically tied to a real-world identity, so tracing can reveal flows without proving who controls an address.
In cyber security investigations, tracing can help examine suspected laundering, ransom payments, or payments connected to online infrastructure. Analysts combine blockchain evidence with other information, such as exchange records or operational data, where legally available. Patterns are investigative clues, not proof of criminal activity: legitimate transactions can look unusual, and services that pool or redistribute funds can make attribution harder.