There has been plenty of talk about the anonymous nature of crypto over the years, especially when it comes to divorce. Many articles have shown how crypto can be an effective tool for spouses who wish to conceal their assets and pay less during the property division process. But again and again, crypto has shown that it may not be as anonymous as people believe. Crypto enthusiasts are constantly getting busted by federal authorities, which is not supposed to be possible. Crypto is supposed to be untraceable, completely anonymous, and impervious to anyone who tries to take a closer look.
A recent case in New York shows us that divorce lawyers are also starting to adapt. Spouses are getting in serious trouble after attempting to use crypto to hide assets. Suddenly, it seems like this strategy isn’t so effective after all. So-called “crypto hunters” are now earning a living by tracking down hidden tokens, and crypto enthusiasts are discovering their strategies might not be as effective as previously thought.
New York Housewife Tracks Down 12 Bitcoins
You no longer need to be a tech guru to track down concealed cryptocurrencies. On May 20th, CNBC reported that a New York housewife had tracked down 12 bitcoins with help from a forensic accountant. These assets had been hidden in an undisclosed wallet and were worth half a million dollars. This story is becoming increasingly common as spouses get help from financial experts to track down cryptocurrencies. Often, these financial experts specialize entirely in tracing crypto.
Are the Laws Catching Up to Crypto?
States are also starting to adapt. Although, as you might expect, the legislation is always five steps behind the rapid advance of crypto technology. Still, progress is being made. Many states now specifically require spouses to disclose their cryptocurrency holdings in the standard request for the production of documents. This is a key part of the pre-trial discovery process.
Crypto Hunters are Taking the Divorce World by Storm
But the real stars of the show here are the so-called “crypto hunters” – financial experts who specialize entirely in the tracking and tracing of these digital assets. Of course, the ability of these financial experts to trace crypto depends entirely on the sophistication of the spouse. Some spouses are extremely well-versed in the world of cryptocurrencies, using multiple methods to hide their tracks and make their financial transactions almost entirely invisible.
Not all spouses have this level of sophistication. Some might only be vaguely aware that crypto can help them conceal assets, and these individuals might lack the skills to truly hide their tracks. The main issue is that lawyers cannot subpoena a central authority to hand over the financial details because there is no central authority. However, most spouses use a platform like Coinbase to trade and store crypto, and these companies keep records on file just like any other broker. In any case, these crypto hunters find themselves in high demand, as today, almost one-quarter of all divorces involve crypto assets.