Identifying and Discovering Cryptocurrency in a Divorce

Identifying and Discovering Cryptocurrency in a Divorce by Paul Sibenik



“Cryptocurrency is actually an extremely transparent asset class since on the Bitcoin blockchain, one can see the holdings of any Bitcoin wallet, along with each and every transaction performed by that wallet ever. This history is viewable by anyone and everyone who wishes to do so. What isn’t always so clear is who owns the wallet since neither the wallet itself nor transactions on the blockchain identify an individual that controls a given wallet. Also, the names of the sender and recipient are not identified in transactions.”

“Lawyers and judges often really struggle to understand what is happening, as they lack expertise in the area.”

“in most cases we’ve encountered, individuals significantly underestimate cryptocurrency holdings their spouse has.”

matters that ought or need to be determined as part of the investigation including:

  • How much money was invested?
  • What cryptocurrencies were invested in? There’s a lot of other cryptocurrencies other than just Bitcoin, including Ethereum and Litecoin for example.
  • What cryptocurrencies do they currently have? They have likely sold or traded cryptocurrencies they previously owned.
  • How & where did the investment occur? Cash? Wire transfer? Credit card? Was it on a cryptocurrency exchange? If so, which one(s)?
  • Where is the cryptocurrency now? On exchanges or personal wallets?
  • What wallet addresses does the person control?
  • What wallets are the Bitcoin or cryptocurrency currently held in?
  • What cryptocurrency exchanges are funds located on?
  • And ultimately, what’s the current total value of all cryptocurrency assets?

“In most cases, when presented with such conclusive and damning evidence proving ownership of cryptocurrency assets, the spouse will be very happy to turn over the cryptocurrency and settle as quickly as possible. This is because the spouse will realize that there would be severe and serious consequences should matters play out legally without a settlement, including possibly being charged with contempt, perjury, and/or fraud as a result of demonstrably lying to and misleading the court.”

“Most people keep at least some funds on exchanges.”

“Non-disclosed cryptocurrency assets in divorce cases are a real growing problem.”

Full article including steps people can take if they suspect their spouse may not be truthfully disclosing cryptocurrency assets by Paul Sibenik click here: