When it comes to tracking crypto crime, Elliptic, a blockchain intelligence platform that traces illicit cryptocurrency flows for exchanges and governments. Also known as crypto forensics software, it helps firms stay compliant with global anti-money laundering rules by spotting suspicious wallets, frozen funds, and hacked assets in real time. This isn’t science fiction—it’s daily work for exchanges like Coinbase and Kraken, who rely on Elliptic to avoid fines, freeze scam wallets, and meet UK OFSI or US FinCEN requirements.
Elliptic doesn’t just flag bad actors—it connects the dots between wallets, exchanges, and darknet markets. If someone steals $5 million in ETH from a crypto exchange, Elliptic can trace where that ETH moved next: to a mixer, to a DeFi protocol, or into a centralized wallet in Turkey. That’s blockchain forensics, the practice of analyzing public ledger data to uncover criminal activity in cryptocurrency networks. And it’s not optional anymore. With the UK reporting a 7% rise in crypto-related sanctions violations, and the EU enforcing strict AML rules across all exchanges, firms that skip this step risk shutting down. Elliptic’s tools also flag risky tokens tied to ransomware gangs, phishing scams, or terrorist financing—exactly the kind of threats covered in posts about phishing attacks and sanctions evasion.
What makes Elliptic different from basic wallet trackers? It uses machine learning trained on decades of real-world crypto crime data. It knows the difference between a legitimate gas station payment and a ransomware payout because it’s seen millions of similar patterns before. It also works with regulators: when the FBI seizes Bitcoin from a darknet marketplace, Elliptic helps them map the entire chain of custody. This is why crypto compliance, the set of legal and technical measures crypto businesses use to prevent money laundering and fraud. isn’t just paperwork—it’s a technical layer built into modern exchanges. If you’re using a platform that doesn’t mention Elliptic, Chainalysis, or similar tools, ask why.
You’ll find posts here that dive into HSM key management, cloud security, and exchange vulnerabilities—all of which tie back to the same goal: keeping crypto safe from theft and abuse. Elliptic doesn’t stop hacks, but it makes them harder to get away with. That’s why every major exchange uses it. And if you’re holding crypto, you’re indirectly benefiting from it—because without these tools, the whole system would collapse under fraud.
Below, you’ll see how real incidents—like 51% attacks on Ethereum Classic or sanctions evasion schemes—connect to the tools that track them. These aren’t theoretical stories. They’re cases Elliptic helped solve. Whether you’re an investor, trader, or just trying to stay safe, understanding how compliance tech works helps you avoid the traps and spot the red flags before it’s too late.
Chainalysis and Elliptic are the two leading blockchain forensics tools used by law enforcement and crypto businesses to trace transactions, detect illicit activity, and ensure compliance. Learn how they work, where they differ, and who should use them.