One key characteristic of many cryptocurrency networks is that they record transactions on a public blockchain.

When a transaction takes place, information such as the sending address, receiving address, amount, and transaction time may be recorded on the relevant blockchain. A transaction hash also provides a unique reference to locate a particular transaction.

This information can be useful when investigating suspicious activity.

For example, a user who discovers an unauthorized transaction may be able to locate the transaction hash and follow the movement of funds between blockchain addresses. Blockchain explorers can make this information easier to inspect.

However, a blockchain address does not necessarily reveal the real-world identity of the person controlling it. Additional information may be required to connect an address to an individual or organization.

Funds can also move through multiple addresses and services, making investigations more complicated.

For this reason, blockchain tracing should not be confused with an automatic identification or recovery system. Blockchain records provide evidence about transactions and movement of assets, but determining ownership and identifying the people behind addresses can require additional evidence.

Anyone investigating a suspicious transaction should preserve the original transaction information rather than relying only on screenshots or summaries.