When a technology company sought to validate its suspicions that a business partner was engaging in fraud and racketeering against the company, its legal counsel retained FTI’s Blockchain Advisory and Cryptocurrency Disputes, Investigations and Litigation (CDI&L) practice to investigate.

Our Role

The client reached out to FTI to investigate the flow of cryptocurrency funds through the back-end software, and to trace the accounts to which company money had been sent.

FTI’s CDI&L team led the effort and provided the following:

  • In-depth evaluation of the partners’ back-end payments software, blockchain infrastructure and general flow of business.
  • Discovery of manual entries created in the system, confirming the ability receive commissions and payments – directly countering defendants’ testimony.
  • Evidence confirming permissions were in place for direct payments, and cryptocurrencies had been stolen in this way.
  • Investigation into the defendants’ previous dealings to determine the validity of the racketeering charge and whether the partners had intentionally set out to defraud the company. The team found that they had engaged in similar behavior with other companies in the past.
  • Assisted in creation of various subpoenas to gather required ownership identification of wallets and accounts.