CCA Cryptocurrency Transaction Auditing 5

Question 1

What does the term 'dusting attack' refer to in the context of cryptocurrency transaction auditing?

Accepted Answer

Sending tiny amounts to target wallets to link addresses and de-anonymize users when dust is spent

Answer

Dusting attacks send minimal amounts to many addresses; when recipients spend the dust combined with other UTXOs, address clustering reveals wallet ownership.

Question 2

An auditor reviewing a mining pool's payout transactions finds that payouts occur at irregular intervals with varying amounts. What accounting method does this suggest the pool uses?

Accepted Answer

Pay Per Last N Shares (PPLNS)

Answer

PPLNS pays miners based on shares submitted during a variable window around when a block is found, resulting in irregular payout timing and amounts that vary with luck.

Question 3

Which regulatory framework requires US cryptocurrency businesses to file a Currency Transaction Report (CTR) for transactions exceeding $10,000?

Accepted Answer

The Bank Secrecy Act (BSA) as enforced by FinCEN

Answer

The Bank Secrecy Act requires money services businesses, including qualifying crypto exchanges, to file CTRs for cash transactions exceeding $10,000 as enforced by FinCEN.

Question 4

When tracing funds through a Tornado Cash-style mixer, which analytical approach provides the best chance of breaking the anonymity?

Accepted Answer

Timing analysis correlating deposit and withdrawal amounts with temporal patterns

Answer

Timing correlation attacks compare deposit and withdrawal timing, amounts, and patterns to probabilistically link deposits to withdrawals despite cryptographic anonymity.

Question 5

A VASP's transaction monitoring system flags a customer who makes many small purchases just below the $3,000 record-keeping threshold. What BSA violation does this suggest?

Accepted Answer

Structuring (smurfing) to evade FinCEN record-keeping requirements

Answer

Structuring involves deliberately breaking transactions into smaller amounts below reporting thresholds to evade BSA record-keeping or CTR filing requirements.

(CCA) Certified Cryptocurrency Auditor Practice Test

(CCA) Certified Cryptocurrency Auditor Practice Test

CCA Cryptocurrency Transaction Auditing 5