For example, Singapore, Japan, and the United States have all passed laws that require exchanges to track the source of the crypto funds.
[6] Blockchain analysis enables law enforcement to trace cryptocurrencies back to individuals wallets on exchanges, which can then be subpoenaed for information on criminal actors.
Because blockchains are typically public, anyone can view the contents of transactions by querying a node or block explorer site (such as Etherscan.io or BitRef.com).
[10] In 2019, a major website hosting child sexual abuse material was taken down by law enforcement using blockchain analysis techniques.
[12][13] In 2022, IRS Criminal Investigations used blockchain analysis to seize over 50,000 bitcoin stolen from the Silk Road dark web marketplace.