Cryptocurrency Exchange Investigations Flashcards
6 cards from real CCI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Cryptocurrency Exchange Investigations flashcards as text
What does KYC stand for in the context of cryptocurrency exchanges?
Answer: Know Your Customer
KYC stands for Know Your Customer, the identity verification process exchanges must perform on users.
Under FinCEN regulations, cryptocurrency exchanges operating in the US are classified as what type of business?
Answer: Money Services Business (MSB)
FinCEN classifies US cryptocurrency exchanges as Money Services Businesses (MSBs), requiring BSA registration and compliance.
What is the 'travel rule' in cryptocurrency compliance?
Answer: A rule requiring VASPs to share originator and beneficiary information for transactions above $3,000
The travel rule requires VASPs to share originator and beneficiary information with counterpart institutions for transactions exceeding $3,000.
What is the primary legal tool used to compel a cryptocurrency exchange to provide user account data?
Answer: Subpoena
A subpoena is the primary legal instrument used to compel cryptocurrency exchanges to disclose user account records and transaction history.
What is a 'chain hop' technique used by criminals on exchanges?
Answer: Rapidly converting funds through multiple cryptocurrencies to obscure the transaction trail
Chain hopping involves converting funds through multiple cryptocurrencies in rapid succession to break the tracing trail and complicate forensic analysis.
What information in a cryptocurrency exchange's KYC records is most valuable to investigators?
Answer: Government-issued ID, selfie photo, residential address, and linked bank accounts
Exchange KYC records typically include government ID, photos, addresses, and linked financial accounts — all critical for identifying and locating suspects.