Digital assets have grown over the years from Bitcoin in 2009 to over 22,000 types of cryptocurrencies and hundreds of thousands of non-fungible tokens. This evolution of digital assets offers both opportunities and risks to businesses. As the regulatory framework continues to develop, it creates unique risks for financial institutions that deal directly with digital assets or serve businesses dealing with digital assets. Additionally, digital assets remain a target for unsavory actors to steal or use them for criminal activity.
Our team of financial experts and certified blockchain investigators work to limit your exposure to risk in this increasingly complex area of financial regulation and crime.
DIGITAL ASSET MANAGEMENT COMPANY | CONFIDENTIAL
We were engaged by a major digital asset management company to conduct a review of their BSA/AML program. This review included evaluating their onboarding process and ongoing due diligence program. We reviewed the cryptocurrency addresses utilized by their customers to determine both their direct and indirect exposure to medium and high-risk cryptocurrency services. This information was included in a report which was presented to their state and federal regulators.
INVESTMENT SCHEME VICTIM | ILLINOIS, U.S.A
We were engaged by the relative of an elder fraud victim. The victim was socially engineered into sending their life savings to multiple cryptocurrency addresses in an elaborate investment scheme. The amount stolen was significant to the victim; however, not large enough to gain the attention of federal law enforcement. Local law enforcement didn’t have the technical expertise or software to initiate the investigation.
We were able to trace the funds to exchanges based in the U.S. and West Africa. Afterwards, we drafted a report discussing the flow of cryptocurrency to include the deposit addresses and transactional data. The victim’s relatives provided the information to local law enforcement who were then able to initiate and further the investigation by drafting law enforcement subpoenas with the information we provided to the exchanges.
DIGITAL ASSET EXCHANGE | NEW YORK, U.S.A
Guidepost has assisted one of the largest digital asset exchanges in the U.S. for more than five years. This relationship started with Guidepost assisting the exchange by imbedding a Guidepost subject matter expert as their interim CCO and assisting in the recruitment of a permanent CCO and compliance staff. We further assisted with a review and enhancement of their BSA/AML policies and procedures, assessment of their sanctions screening tool, transfer to a new sanctions screening tool, assessing AML scenarios used, and also with their annual NYDFS 504 certification.
MEDIA AND ENTERTAINMENT ORGANIZATION | CONFIDENTIAL
We assisted a media and entertainment organization by conducting an investigation regarding an allegation of a “pump and dump” scheme involving one of their public figures. Using our digital asset tracing skills, we tracked the public figure’s digital asset movements and matched them against their social media activities to develop a timeline of actions and activities before interviewing them. At the conclusion of the investigation, we prepared a report demonstrating the evidence identified.
Guidepost Solutions has formed strategic partnerships with leading blockchain investigative software providers to support our client engagements.