What can a cryptocurrency transaction not prove?¶

On its own, it cannot prove a person's identity, physical location, intention, consent or ultimate benefit. Transparent network data does not remove the need for attribution evidence.

An address is not a human identity¶

The address may represent an exchange, merchant, smart contract, shared wallet or individual. A custodian, automated system, delegate or compromised session may initiate movement, and the account holder can differ from both operator and beneficiary.

Network time usually relates to protocol processing, not necessarily the moment a user authorised the transaction. Payment purpose cannot be derived reliably from movement alone.

State the limits of a trace¶

Preserve the network identifiers, then seek exchange, wallet, endpoint, communications and account records. Following value to the next address identifies a blockchain destination, not automatically who received or retained economic benefit.

Reports should set out both the recorded movement and every unresolved question about control, purpose, knowledge and location.