Category: Cryptocurrency

News about cryptocurrency investigations in general and about the involvement of NGH Group in those investigations through its use of the world’s leading forensic tool for cryptocurrency and blockchain investigations.

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CNBC Cites Himonidis as Expert on Cryptocurrency in Divorce

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On May 20, CNBC published an article on the challenges of tracking down cryptocurrency in divorce cases. Titled “A husband hid $500,000 in bitcoin during a divorce—and got busted by a crypto hunter,” the article includes insights from divorce attorneys, financial advisors, and cryptocurrency forensic investigators, including NGH Group President Nicholas Himonidis.

As licensed private investigators specializing in high-tech investigations, including computer forensics and cryptocurrency/blockchain forensics, the NGH Group has firsthand knowledge of how the cryptocurrency landscape continues to evolve. No longer just hunting down undisclosed bitcoin, the NGH Group conducts comprehensive cryptocurrency forensic investigations to locate and trace many forms of cryptocurrency and NFTs across multiple blockchains, providing critical evidence to attorneys and their clients.

“There’s not just a couple of blockchains to worry about anymore. There’s hundreds and hundreds of coins out there on their own little independent blockchains,” said Himonidis, who serves on the New York State Bar Association Task Force on Emerging Digital Finance and Currency and is co-chair of the Nassau County Bar Association Cyber Law Committee.

The NGH Group is one of very few private firms with access to—and certified in the use of—Chainalysis Reactor, one of the most powerful cryptocurrency forensic tools available. Tools like Reactor and Chainalysis Storyline allow the NGH Group to track cryptocurrency and NFTs across multiple blockchains and remain on the cutting edge of identifying and tracing crypto assets.

Read the full CNBC article here.

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NGH Group Certified in Chainalysis Reactor, the World’s Leading Crypto/Blockchain Investigation Platform

Following a rigorous vetting process and extensive education and training, the NGH Group is now one of the few private-sector firms certified in the use of Chainalysis Reactor, the world’s leading cryptocurrency and blockchain investigation tool. Until recently, this ground-breaking technology was only available to law enforcement, government agencies, financial regulators, and financial institutions that operated in the crypto space.

Full access to this comprehensive suite of tools allows the NGH Group to trace crypto funds and analyze transactions to pinpoint intersections between cryptocurrency and fiat currency—a critical step to finding and pursuing recovery of crypto assets. Reactor also permits the identification of crypto addresses and wallets that appear to be controlled by the same person or entity, assets that may not have been previously disclosed. 

“Identifying and tracing crypto assets differs fundamentally from any other form of financial investigation, and it requires very high-tech tools and methodologies,” notes NGH Group founder and CEO Nicholas G. Himonidis, a Certified Cryptocurrency Forensic Investigator and qualified expert witness in cryptocurrency forensics. “Through Chainalysis Reactor, the NGH Group can now provide law firms, forensic accountants and other financial professionals, and even law enforcement with more accurate, more comprehensive, and far more efficient cryptocurrency investigations than previously possible.

 “For anyone needing to identify or trace crypto assets and activity in a divorce proceeding, commercial transaction, hacking, theft, or scam case, this is a game changer.”

 With multiple certifications in the digital forensic field, as well as a background as a practicing attorney, Himonidis is considered one of the country’s leading experts in the field. Recognizing that expertise, the New York State Bar Association appointed Himonidis to its recently formed Task Force on Emerging Digital Finance and Currency. 

 For assistance with cryptocurrency and blockchain investigations, or help with other high-tech investigative solutions, contact the NGH Group.

 

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How to Handle Cryptocurrency in Estate Planning

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Unlike other assets, which can generally be identified and accessed with appropriate documentation, cryptocurrency differs fundamentally from a “custody and control” point of view.

Cryptocurrency cannot be transacted or “controlled” without the private key(s) associated with the wallet/address where it is stored. Assuming you even know the crypto exists, without these keys, all the certified legal documentation in the world confirming a client’s “rights” to a store of cryptocurrency won’t help the client gain access if the crypto is stored outside of a brokerage or exchange, in a non-custodial private wallet.

So how does a testator or creator of a trust make a provision to pass on those private keys and related information about cryptocurrency after their death while maintaining the security and control of those assets during their lifetime? Frequent news stories about stolen or hacked crypto assets attest to the difficulty of this challenge.

NGH Group CEO Nicholas G. Himonidis, a certified expert in cryptocurrency and an attorney himself, will answer these questions and many others during a continuing education class for the Estate Planning Council of Suffolk County, Inc. The program will present effective, practical strategies for assisting clients with this unique asset class as part of an estate or trust from a “custody and control” perspective without compromising the security of the asset itself during the client’s lifetime.

The session is scheduled for 5:30-7:30 p.m. on Wednesday, October 19, at the Bijou Restaurant in Melville, N.Y.

For more information or to register, visit the council’s website.

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NYT Taps Nick Himonidis for Cryptocurrency Expertise

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When the New York Times needed an expert for an article on divorcing spouses hiding assets using cryptocurrency, they contacted NGH Group CEO Nicholas G. Himonidis. The attorney and cryptocurrency forensics expert shared several instances of finding crypto assets hidden by divorcing spouses.

  • A forensic search of one laptop found $700,000 in the privacy coin Monero in a hot wallet. When asked about it, the spouse feigned surprise at the wallet’s existence.
  • When his wife filed for divorce, another man transferred millions of dollars to digital wallets and blockchain-based smart contracts before fleeing the United States.

Read the full article

 

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5 Steps for Uncovering Cryptocurrency Activity

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The exponential growth of cryptocurrency has introduced new complexities when searching for hidden assets. Whether a client is going through a divorce, a business breakup, or another situation that requires financial due diligence or investigation, financial and legal professionals (and their clients) need to watch for any signs that the other party may have cryptocurrency.

Any suspicion of cryptocurrency demands careful exploration, which includes the following steps.

  1. For litigation, subpoena cryptocurrency brokerages and trading platforms in the United States. If the counterparty is dealing in cryptocurrency, chances are high that one of the top 20 brokerages or trading platforms is involved, and many of them will honor a valid subpoena for information.
  1. Search for physical evidence of cryptocurrency activity. When looking for evidence of cryptocurrency activity, conduct an old-fashioned search for tangible items associated with cryptocurrency, such as hardware wallets, Cryptosteel-type physical backups, paper address certificates, and recovery seed phrases.
  1. Mine available financial data for intersections between crypto and fiat currency. Forensic accountants should look for any payments to or from any known cryptocurrency brokerage platform or trading app. Other signs include large, unexplained cash withdrawals, which may have been converted to crypto on the black market or through Bitcoin ATMs (BATMs), or expenditure patterns that suggest a dollar-cost averaging strategy of crypto investment.
  1. Target cryptocurrency in discovery demands. Beyond asking whether the other party has engaged in cryptocurrency transactions, attorneys need to request specific information. For example, discovery demands should include specific identification of any cryptocurrency wallets, as well as the Extended Master Public Key(s) (xPubs), which allow read-only viewing of wallet transactions.
  1. Search the other party’s data and devices. After securing legal access, forensically examine the counterparty’s digital universe for detailed evidence of cryptocurrency wallets, blockchain addresses, active and deleted internet history related to cryptocurrency transactions, and any interaction with brokerages and platforms. (This is often the only effective way to discover peer-to-peer cryptocurrency activity.)

Following the above game plan will help uncover whether a counterparty has engaged in cryptocurrency activity and obtain critical information for valuation. For assistance with any or all of these steps, contact the NGH Group. Founder Nicholas Himonidis is a Certified Computer Forensic Specialist, Certified Fraud Examiner, and Certified Cryptocurrency Forensic Investigator who frequently lectures on crytpocurrency and blockchain investigations.

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NGH Joins Cryptocurrency Panel for New York State Society of CPAs

Fraud, ban and regulation of cryptocurrencies.

The New York State Society of CPAs (NYSSCPA) has invited NGH Group President and CEO Nicholas G. Himonidis to join a panel discussion on Cryptocurrency Fraud, Forensics, and Investigation during the organization’s November 8 webcast. Nick will be joining a panel with Pamela Clegg of CipherTrace, a well-known blockchain forensics firm, and Don Fort of Kostelanetz & Fink LLP, Immediate Past Chief of the IRS Criminal Investigation Division.

Attendees will learn the latest laws regarding cryptocurrency and related fraud, as well as how forensics can uncover “hidden” cryptocurrency. Panelists will also discuss recent court cases about the legal and illegal uses of cryptocurrency.

Nick is a frequent speaker at accounting, legal, and technical conferences and seminars. His background as both a lawyer and cryptocurrency/technology expert make him uniquely qualified to address multiple issues regarding cryptocurrency.

To request Mr. Himonidis as a speaker on this or other topics, call (516) 621-6500 or send an email.

 

 

 

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Recent trends and hot topics in digital evidence

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On October 28, 2021, NGH Group CEO and President Nicholas G. Himonidis, J.D., CFE, CCFS, CCFI, will address the members of the Northern Kentucky Bar Association on what they need to know when counseling clients and conducting e-discovery in family law cases.

Attendees will learn about new technology and legal issues in cryptocurrency, cloud computing, digital espionage (and how to prevent it), encrypted data, and other issues.

As an attorney and computer forensics expert, Nick will educate attendees on both the legal and technical issues in conducting e-discovery in non-commercial litigation. He will also discuss the many forms of evidence that only exist in digital form and must be preserved quickly—before they disappear forever.

To request Mr. Himonidis as a speaker on this or other topics, call (516) 621-6500 or send an email.

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NGH educates divorce lawyers on tracking cryptocurrency

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NGH Group President and CEO Nicholas G. Himonidis shared his cryptocurrency expertise  with the Erie County Bar Association on September 14, 2021. His online presentation on how to find and track cryptocurrency in divorce litigation was part of the group’s continuing education program.

Divorcing spouses are increasingly using Bitcoin and other cryptocurrencies to hide assets and to conduct “secret” transactions. In his presentation, Nick educated attorneys on the benefits of digital forensics when accessing the spouse’s electronic devices and examining blockchain transactions.

He also explained the types of “wallets” a spouse may use to hold and hide cryptocurrency, how cryptocurrency exchanges work, what documents are available for attorneys to pursue, and the critical differences between “peer to peer” vs. “exchange based” cryptocurrency activity.

The presentation featured practical tips that attorneys can use in their own practices right away.

To request Mr. Himonidis as a speaker on this or other topics, call (516) 621-6500 or send an email

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Nick Himonidis Discusses Cryptocurrency Investigation with Matt Spaier of PI Perspectives

Nick Himonidis joined Matt Spaier of PI Perspectives podcast for an in depth conversation regarding the many ways in which cryptocurrency investigations come up, and some of the tools, methods and techniques being used to trace cryptocurrency transactions, locate cryptocurrency, and attribute otherwise ‘anonymous’ cryptocurrency activity to individuals and organizations.
Here’s a link to the entire podcast on YouTube https://www.youtube.com/watch?v=t3iwekRwosw.

The NGH Group assists attorneys, forensic accountants and other investigators with matters involving cryptocurrency on a regular basis. For more information about cryptocurrency investigation and forensics by The NGH Group, visit https://thenghgroup.com/cryptocurrency/

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Nicholas Himonidis at The CPA Academy

Nicholas Himonidis co-presented a live webinar for The CPA Academy entitled ‘Cryptocurrency: How To Find And Track in Litigation‘. The webinar will cover the tools and methods used to identify cryptocurrency use and conduct forensic analysis of cryptocurrency transactions.               While no longer offering CLE credits, the course is still available on the CPA Academy’s website at:

https://www.cpaacademy.org/archived_show/a0D2S00000ikk5IUAQ